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- Coverage by a bargaining council agreement (private and public sector) reduced inequality in the top half of the distribution between the 90/50 deciles in 2005. Blunch and Verner, Ghana Union membership Standard deviation of log monthly wages Find the union wage premium 16.9% to be statistically signifi cant for bottom decile. Unions raise fl oor for those at the bottom of the distribution and compress wage structures. Standard deviation of log wages for union workers is smaller than for their nonunion counterparts. Find no direct spillover eff ect to nonunion workers on wages but an indirect spillover through training.
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Dell’Aringa, C.; Pagani, L. 2007. “Collective bargaining and wage dispersion in Europeâ€, in British Journal of Industrial Relations, Vol. 45, March, pp.29–54.
- Deunionization accounts for 35% in the US and 53% in the UK of the increase in the variance of male wages on aggregate from to 1998. Deunionization had a drastically smaller eff ect on women than men.
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DiNardo, J.; Fortin, N.M.; Lemieux, T. 1996. “Labor market institutions and the distribution of wages, 1973–1992: A semiparametric approachâ€, in Econometrica, Vol. 64, No. 5, Sep., pp.1001–1044.
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- Dustmann et al., Germany Union coverage (fi rms bound by industryor fi rmlevel agreements and workers covered by these agreements), Union density 85/15, 85/50, 50/15, and 40/5 diff erentials Attributes one-third of the increased inequality to the bottom half of the wage distribution during 1995–2004 to deunionization. European Commission, EU Countries Trade union density, collective bargaining coverage, 90/10 and 90/50 diff erentials, gender pay gap Trade union density is associated with wage inequality. High collective bargaining coverage is associated with a reduced gender pay gap. Bargaining centralization, coverage and coordina -tion do not impact the level of wage inequality.
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- Gosling and Machin, United Kingdom Union membership 90/10, 90/50 and 50/10 diff erentials, standard deviation of log earnings Focus on the period 1983–1998. The rate of unionization decreased faster in the UK than the US. Wage inequality increases faster in the UK than the US over this period. Whereas the wage structures within the respective union and nonunion sectors were diff erent in (more compressed in the UK) by there was a close resemblance in terms of the variance within the union and nonunion sectors and the union wage gap. Find that faster deunionization in the UK accounts for about one third of the UK–US convergence over the period. Unions have no eff ect on wage inequality for women.
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Gosling, A.; Lemieux, T. 2001. “Labour market reforms and changes in wage inequality in the United Kingdom and the United Statesâ€, NBER Working Paper Series No. 8413 (Cambridge, MA, National Bureau of Economic Research).
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- Kristal and Cohen, Israel Union density, extension of collective agree ments, occupational agree ments, local agreements, peaklevel agreements, public sector agree ments Gini coeffi cient of hourly wage Decentralization (1970–1987), characterized by the reduction in the extension of agreements and the increased prevalence of local agreements over peak agreements, resulted in an increase in earnings inequality in Israel between and 2003. Lemieux, Canada Union member -ship (includes nonunion work ers covered by collec tive agreements) Variance of log wages Unions reduce the returns to both observable and unobservable skills. Unions reduce wage inequality among workers.
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Lindbeck, A.; Snower, D.J. 1989. The Insider-Outsider Theory of Employment And Unemployment (Cambridge, MA, MIT Press).
M2578 - HAYTER PRINT.indd 163 M2578 - HAYTER PRINT.indd 163 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) The role of collective bargaining in the global economy Bell, D.B.; Pitt, M.K. 1998. “Trade union decline and the distribution of wages in the UK: evidence from kernel density estimationâ€, in Oxford Bulletin of Economics and Statistics, Vol. 60, No. 4, pp.509–28.
- M2578 - HAYTER PRINT.indd 164 M2578 - HAYTER PRINT.indd 164 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Collective bargaining and wage inequality 165 Fairris, D. 2005. “What do unions do in Mexico?â€, Working Paper, July 2005, University of California Riverside. Available at: http://economics.ucr.edu (2 July 2009).
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- M2578 - HAYTER PRINT.indd 165 M2578 - HAYTER PRINT.indd 165 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) The role of collective bargaining in the global economy Hibbs, D.A., Jr. 1990. Wage compression under solidarity bargaining in Sweden, in Economic Research Report No. 30 (Stockholm, Trade Union Institute for Economic Research).
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- M2578 - HAYTER PRINT.indd 167 M2578 - HAYTER PRINT.indd 167 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) The role of collective bargaining in the global economy Tsafack-Nanfosso, R.A. 2002. “Union wage differential: Cameroonâ€, in Journal of Development Alternatives and Areas Studies, Volume 21 (Sep.–Dec.), pp.104–33.
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- M2578 - HAYTER PRINT.indd 171 M2578 - HAYTER PRINT.indd 171 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Study Country Institutional variables Measure of wage inequality Main fi ndings: collective bargaining institutions and wage inequality DiNardo and Lemieux, United States, Canada Union membership, minimum wage Variance of log wages, standard deviation of log hourly wages, 25/75, 10/90, 10/50, 50/90 diff erentials Unionization rate fell in the US in the period 1981–88 but remained constant in Canada. During this period, wage inequality grew dramatically in the United States compared with Canada. The authors estimate that twothirds of the diff erence in the variance of log wages between the US and Canada is explained by unions and minimum wage laws.
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- M2578 - HAYTER PRINT.indd 174 M2578 - HAYTER PRINT.indd 174 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Norway, Sweden, Switzerland, and the United States union density, collective bargaining coverage Gosling and Lemieux, United Kingdom and United States Union membership Standard deviation and variance of log hourly wages, 90/10 and 50/10 diff erentials, Kernel density of wage distribution Deunionization in the United Kingdom, producing a unionization rate near that of the United States, caused inequality in the UK to approach levels close to the US.
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- M2578 - HAYTER PRINT.indd 175 M2578 - HAYTER PRINT.indd 175 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Study Country Institutional variables Measure of wage inequality Main fi ndings: collective bargaining institutions and wage inequality Hibbs, Sweden Centralized wage framework agreements Variance of log wages Wage dispersion in the private sector declined from the mid1960s to 1982–83, following the implementation of central framework agreements. Find that the returns to individual worker characteristics decreased during this time period.
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- M2578 - HAYTER PRINT.indd 177 M2578 - HAYTER PRINT.indd 177 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Study Country Institutional variables Measure of wage inequality Main fi ndings: collective bargaining institutions and wage inequality Lemieux, Canada, United States Union membership (includes nonunion workers covered by collective agreements) Standard deviation of log wages, union wage gap, union variance gap Unions reduce within sector variance of wages for both women and men. Unions reduce overall variance for men in Canada and United States but increase variance for Canadian women.
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- M2578 - HAYTER PRINT.indd 183 M2578 - HAYTER PRINT.indd 183 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING) Author Country Institutional variables Measure of inequality Main fi ndings: collective bargaining institutions and wage inequality Fields and Yoo, Korea Union membership Earnings diff erentials Being a union member raises income by 5.8%.
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- M2578 - HAYTER PRINT.indd 186 M2578 - HAYTER PRINT.indd 186 18/04/2011 09:19 18/04/2011 09:19 Susan Hayter - 9781849809764 Downloaded from Elgar Online at 10/06/2016 05:21:09PM via CitEc (NOT FOR DISTRIBUTION, SHARING or POSTING)
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- Machin, United Kingdom Union recognition, wage council coverage Variance of log real hourly wages, 90/10 diff erential Union membership fell in between and 1991. Wage dispersion grew faster in the nonunion sector during this period. The declining importance of wage council minimum wages reduced the wage compression eff ect and, together with declining unionization eff ect, contributed to rising wage inequality. Metcalf, United Kingdom Coverage by collective agreements Coeffi cient of variation of weekly earnings, standard deviation of the log of hourly wages, variance of log hourly wages Dispersion of wages is lower among workers covered by collective agreements than among uncovered workers. Among male workers covered by a collective agreement, union collective agreements narrow wage diff erentials (within sector eff ect). For male manual workers, union negotiated collective agreements increase dispersion in wages across industry (between sector eff ect).
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- Membership of a union reduced wage inequality between the 90/10, the 90/50 and in particular the 50/10 deciles in both and 2005. The reduction in inequality overall was driven by the reduction in lower tail inequality.
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