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Firm Size and Union Threat Effects across Genders: Evidence from NLSY79

Phanindra Wunnava

No 45, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: It is evident that both male and female workers in medium/larger establishments receive not only higher wages but also have a higher probability of participating in benefit programs than those in smaller establishments. This reinforces the well-documented ‘size’ effect. Further, the firm size wage effects are much larger for men than women. The union wage effect decreases with establishment size for both genders. This supports the argument that large nonunion firms pay higher wages to discourage the entrance of unions (i.e., the ‘threat’ effect argument). In addition, the union wage premium is higher for males across firm sizes relative to females. This implies that unions in the large establishments may have a role to play in achieving a narrowing of the gender union wage gap. Further, given the presence of noticeable gender differences in estimated union effects on the different components of the compensation structure, unions should not treat both genders similarly with respect to wages and benefits.

Keywords: size effect; threat effect; fringe benefits; compensation; gender; union-nonunion; random effects (search for similar items in EconPapers)
JEL-codes: J16 J31 J32 J51 (search for similar items in EconPapers)
Date: 2017
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