Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas

34 Pages Posted: 6 Oct 2012

See all articles by Fernando Rios Avila

Fernando Rios Avila

Bard College - The Levy Economics Institute

Barry T. Hirsch

Georgia State University; IZA Institute of Labor Economics

Abstract

Using a common methodology, the effects of unions on wage levels and wage dispersion are estimated for two neighboring countries, Bolivia and Chile, and for the U.S. The analysis shows that unions have broadly similar effects on the wage distribution within these three economies. The findings suggest that the political economy of unions, coupled with market constraints on labor costs, produce commonality in union wage effects that transcend other economic and institutional differences.

Keywords: unions, wages, wage dispersion, Latin America

JEL Classification: J31, J51

Suggested Citation

Rios Avila, Fernando and Hirsch, Barry T., Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas. IZA Discussion Paper No. 6757, Available at SSRN: https://ssrn.com/abstract=2157899

Fernando Rios Avila (Contact Author)

Bard College - The Levy Economics Institute ( email )

Blithewood, Bard College
Annandale, NY 12504-5000
United States

Barry T. Hirsch

Georgia State University ( email )

Department of Economics
Andrew Young School of Policy Studies
Atlanta, GA 30302-3992
United States
404-413-0880 (Phone)
404-413-0145 (Fax)

HOME PAGE: http://unionstats.gsu.edu/bhirsch

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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