Wage Inequality, Collective Bargaining, And Relative Employment From 1985 To 1994: Evidence From Fifteen Oecd Countries

Lawrence Kahn

The Review of Economics and Statistics, 2000, vol. 82, issue 4, 564-579

Abstract: Using microdata from 1985 to 1994 for fifteen OECD countries, I find that greater union coverage and membership lead to higher relative pay and lower relative employment for less-skilled men, with similar pay effects but only weak evidence of negative employment effects for less-skilled women. Greater economy-wide union coverage or membership leads to lower employment and higher relative wages for young men (with similar but weaker effects for young women), and a greater propensity to attend school for both genders. With few jobs for young people, education may have a low opportunity cost and may enhance one's employability. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 2000
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