ECON 2T03 Lecture Notes - Lecture 15: Nonunion, Longitudinal Study, Blue-Collar Worker
11 Dec 2017
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Document Summary
Union wage impact: the basic two-sector model: Measuring union - non union wage differential: the percentage difference in wage between union and non union workers: the basic predictions of the model: Union results in a workers wage increase but decline in employment in that sector. Union employment will rise in non union sector resulting in a wage decrease there. To estimate the pure union-nonunion wage differentials, we need to conrol for a number of factors: skills difference factor, labour quality, differences in the characteristics of job assignments of workers, education, training, and experience, productivity related factors. Union wage impact : empirical evidence: the main findings indicate: Union nonunion wage differential is 10 20 percent for the u. s. economy as a whole. Union nonunion wage differential is 10 25 percent for canadian economy as a whole. Longitudinal studies: longitudinal data contains observations on the same individual over time, the estimated union nonunion wage differential is reduced to approximately.
