The Impact of Deunionisation on Earnings Dispersion Revisited

31 Pages Posted: 16 Apr 2003

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Ralph W. Bailey

University of Birmingham - Department of Economics

Stanley Siebert

Business School, University of Birmingham; IZA Institute of Labor Economics; Institute of Economic Affairs (IEA)

Date Written: February 2003

Abstract

This paper examines the effects of union decline in Britain on changes in earnings dispersion between 1983 and 1995. As part and parcel of the exercise, the effects of changes in the wage gap and the variance gap are also calculated. Detailed findings are provided by gender and broad sector, allowing for worker characteristics and the skill gradient. Deunionisation is shown to account for surprisingly little of the increase in earnings dispersion in the private sector for either males or females. Although union decline has been more muted in the public sector, union effects are actually stronger here. In the public sector, unions no longer reduce earnings variation as much they once did by virtue of their growing tendency to organise more skilled groups.

Keywords: Deunionization, Union Structure, Earnings Dispersion, Wage Gap, Variance Gap, Private/Public Sector

JEL Classification: D3, J31, J51

Suggested Citation

Addison, John T. and Bailey, Ralph W. and Siebert, Stanley, The Impact of Deunionisation on Earnings Dispersion Revisited (February 2003). IZA Discussion Paper No. 724. Available at SSRN: https://ssrn.com/abstract=389346

John T. Addison (Contact Author)

University of South Carolina - Moore School of Business - Department of Economics ( email )

The Francis M. Hipp Building
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Columbia, SC 29208
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803-777-7400 (Phone)
803-777-6876 (Fax)

HOME PAGE: http://mooreschool.sc.edu/moore/economics/profiles/addison.htm

IZA Institute of Labor Economics

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

Ralph W. Bailey

University of Birmingham - Department of Economics ( email )

Economics Department
Birmingham, B15 2TT
United Kingdom

Stanley Siebert

Business School, University of Birmingham ( email )

Edgbaston
Birmingham, B15 2TT
United Kingdom
(44) 1214146698 (Phone)

IZA Institute of Labor Economics

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

Institute of Economic Affairs (IEA) ( email )

2 Lord North Street, Westminster
London, SW1P 3LB
United Kingdom

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