Union Wage Spillover Effects

Unions are likely to raise the wages of their members above market levels, and create the union-nonunion wage differential.

*The observed differential is between 10-25%.

*The observed differential doesn't fully tell us the correct story, because of a variety of factors we need to control for:

-Union and non-union workers are not otherwise identical, they may differ by age or education or other factors that affect wages.

-Unions may affect productivity of their workers (up or down), and we need to control for this.

-Unions will affect the wages in their own industry, but also wages in other industries that they are being compared to ?the spillover effects.

First, the union-nonunion differential is affected by the threat effect.

*Non-union firms may be forced to keep wages higher to keep workers from either leaving to go to the union firms within their industry, or to keep them from organizing in a union.

http://www.econ.uregina.ca/king/econ381-2002/notes/381-200230-section%2011%20unions.htm

Unions protect the well-being of both union and nonunion workers . Unions have fought for shorter work weeks, safer working conditions, more holidays (such as labor day), and improved health care benefits and retirement programs, that have benefited all workers in the economy.

http://amosweb.com/cgi-bin/pdg.pl?fcd=dsp&term=An+Altogether+Look+at+UNIONS

In a message dated 12/7/04 8:15:42 PM, [EMAIL PROTECTED] writes:

Citation please: OMB, CBO, Federal Reserve

PhDs currently employed by labor councils, liberal think tanks, and munchkin former Cabinet members may be considered.

Ciao,

Craig




In a message dated 12/7/2004 12:47:55 P.M. Eastern Standard Time, [EMAIL PROTECTED] writes:

It has been proven that unions keep the general wage rates up in an area.

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