Wage Inequality, Collective Bargaining and Relative Employment 1985-94: Evidence from 15 OECD Countries

Posted: 15 May 2000

See all articles by Lawrence M. Kahn

Lawrence M. Kahn

Cornell University - School of Industrial and Labor Relations; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Abstract

Using microdata from 1985 to 1994 for fifteen OECD countries, I find that greater union coverage and membership lead to higher relative pay and lower relative employment for less-skilled men, with similar pay effects but only weak evidence of negative employment effects for less skilled women. Greater economywide union coverage or membership leads to lower employment and higher relative wages for young men, with similar but weaker effects for young women, and for both genders, a greater propensity to attend school. With few jobs for young people, education may have a low opportunity cost and may enhance one's employability.

JEL Classification: J23

Suggested Citation

Kahn, Lawrence M., Wage Inequality, Collective Bargaining and Relative Employment 1985-94: Evidence from 15 OECD Countries. The Review of Economics and Statistics. Available at SSRN: https://ssrn.com/abstract=223231

Lawrence M. Kahn (Contact Author)

Cornell University - School of Industrial and Labor Relations ( email )

265 Ives Hall
Ithaca, NY 14853-3901
United States
607-255-0510 (Phone)
607-255-4496 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

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

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