Wage Inequality, Collective Bargaining and Relative Employment 1985-94: Evidence from 15 OECD Countries
Posted: 15 May 2000
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: Suggested Citation