State Substitution for the Trade Union Good: The Case of Paid Holiday Entitlements

34 Pages Posted: 9 Jul 2018

See all articles by John Forth

John Forth

National Institute of Economic and Social Research (NIESR)

Alex Bryson

UCL; National Institute of Economic and Social Research (NIESR)

Abstract

The literature on the union wage premium is among the most extensive in labour economics but unions' effects on other aspects of the wage-effort bargain have received much less attention. We contribute to the literature through a study of the union premium in paid holiday entitlements, using large-scale survey data for the UK. We find that the union premium on paid holidays is substantially larger than the union premium on wages. However, the premium fell with the introduction of a statutory minimum entitlement to paid leave. This is indicative of the difficulties that unions have faced in protecting the most vulnerable employees, and symptomatic of their decreasing regulatory role in the UK labour market.

Keywords: trade unions, holidays, vacation, working time

JEL Classification: J51, J32, K31

Suggested Citation

Forth, John and Bryson, Alex, State Substitution for the Trade Union Good: The Case of Paid Holiday Entitlements. IZA Discussion Paper No. 11615, Available at SSRN: https://ssrn.com/abstract=3209709

John Forth (Contact Author)

National Institute of Economic and Social Research (NIESR) ( email )

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Smith Square
London SW1P 3HE
United Kingdom

Alex Bryson

UCL ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

HOME PAGE: http://www.niesr.ac.uk/staff/staffdetail.php?StaffID=307

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