We use Canadian matched employer-employee data to estimate the effect of unions on wage dispersion. Our approach relies on an extension of Abowd, Kramarz, and Margolis (1999) (AKM) two-way fixed effects approach, where unions are allowed to affect the returns to unobservable worker characteristics captured by worker fixed effects. We find that unions compress the returns to unobserved characteristics, resulting in a substantial decline in within-firm dispersion. In contrast, unions have a modest effect on between-firm wage dispersion, as estimated by comparing the relationship between firm wage premiums and productivity among union and non-union firms. Overall, we find that most of the large difference in the variance of log wages between union (variance of 0.24) and non-union (variance of 0.36) workers is due to union wage compression effects, rather than composition effects.
Information on participating / attending:
Date:
10/14/2025 14:00 - 10/14/2025 15:15
Event venue:
RFBerlin, Gormannstrasse 22
10119 Berlin
Berlin
Germany
Target group:
Scientists and scholars, all interested persons
Email address:
Relevance:
transregional, national
Subject areas:
Economics / business administration, Politics
Types of events:
Seminar / workshop / discussion
Entry:
08/22/2025
Sender/author:
Harald Schultz
Department:
Kommunikation
Event is free:
yes
Language of the text:
English
URL of this event: http://idw-online.de/en/event79895
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