Does Union Membership Matter? The Effect of Establishment Union Density on the Union Wage Differential

Kevin Reilly

The Review of Economics and Statistics, 1996, vol. 78, issue 3, 547-57

Abstract: This paper examines the union's effect on wages using a unique set of variables: dummy variables for the density of unionization in the establishment for which the individual works. The results suggest that after controlling for establishment union density a union member wage gain is only observed for the lowest level, the 1% to 25% density range. For the 26% or greater establishment union density ranges the union's effect on wages is for all individuals working in the establishment and not just union members. The wage gain is 20% for both the establishment union density ranges of 26% to 50% and 51% to 75%. Individuals working for an establishment with a greater than 75% establishment unioni density achieve a wage gain of 64%. Copyright 1996 by MIT Press.

Date: 1996
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