Has Unionization Raised Wages
Let’s start by reviewing the effects of unions on relative wages. Taking all private industrial workers together, union workers-in 1995 had total compensation 3 percent above the compensation of nonunion workers. However, this raw number does not reflect the fact that the skill, educational, and industrial composition of union workers differs from those of nonunion workers.
Taking into account worker differences, economists have concluded that union workers receive on a enrage a 10 to 15 percent wage differential over nonunion workers, The differential ranges from a negligible amount for hotel workers and barbers to 25 to 30 percent higher earnings for skilled construction work I”S or coal miners. The pattern of results suggest that where unions can effectively monopolize labor supply and control entry. they will be most effective in raisin g wages.There is some evidence that the impact of unions on wages has eroded in recent years.
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