Volume 33, Number 1 (Winter) 1998: Symposium on Microeconomic Methods

Hirsch,  Barry T., and Edward J. Schumacher. 1998. "Unions, Wages, and Skills." Journal of Human Resources 33(1): 201-219.

Studies uniformly conclude that union wage effects are largest for workers with low measured skills. Longitudinal analysis using 1989/90-1994/95 Current Population Survey matched panels produces union premium estimates equivalent across skill groups, following appropriate sample restrictions and control for worker-specific skills. Evidence from the
National Longitudinal Survey of Youth on aptitude scores confirms that union workers with high measured skills have relatively low unmeasured skills. Differential selection by skill class and skill homogeneity in union workplaces results from employer and employee sorting in response to wage standardization, union organizing where skills are homogeneous,
and unionized employers reluctance to hire the most as well as least able workers.

Barry T. Hirsch is a professor of economics at Florida State University. Edward J. Schumacher is an assistant professor of economics at East Carolina University. Helpful comments were received from Ethel Jones, Philip Rothman, Walter Wessels, two anonymous referees, and seminar participants at the Bureau of Labor Statistics. David Macpherson assisted with creation of data sets used in the paper. The data used in this article can be obtained beginning in May 1998 through February 2001 from Barry Hirsch, Department of Economics, Florida State University, Tallahassee, FL 32306.


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