Document Type
Article
Publication Date
1-1999
Abstract
An individual covered by a collective bargaining agreement but who is not a union member is estimated to earn about 13% lower wages than a union member. Sectors with relatively few covered nonmembers are associated with a large coverage differential, while sectors with high proportions of covered nonmembers are associated with small differentials. This suggests freeriders either weaken the bargaining position of the union or weak bargaining positions increase the incentive to freeride. Only a modest amount of this differential is accounted for by unmeasured ability, the probationary period associated with newly hired union workers, or union status misclassification.
Identifier
10.2307/1060811
Publisher
Southern Economic Association
City
Chattanooga, TN
Repository Citation
Schumacher, E.J. (1999). What explains wage differences between union members and covered nonmembers? Southern Economic Journal, 65(3), 493-512. doi: 10.2307/1060811
Publication Information
Southern Economic Journal