Seniority Profiles in Unionised Workplaces: Do Unions Still Have the Edge?

Centre for European Labour Market Research Working Paper No. 2004-09

37 Pages Posted: 1 Jun 2005

See all articles by Alexandros Zangelidis

Alexandros Zangelidis

University of Aberdeen - Business School

Date Written: October 2004

Abstract

This paper, using data from the British Household Panel; Survey, explores how institutional arrangements influence employees' wages. Particularly, it distinguishes the different paths seniority-earnings profiles follow depending on whether the individual is employed in a workplace where trade unions and collective bargaining are present, or not. Within this framework, two propositions are set. It is argued that in the union sector seniority should be an important determinant of wages, while in the less structured non-union sector true productivity, proxied by the more competitive accumulated skills and professional expertise, should have a key role on earnings profiles. Indeed the empirical analysis on male employees verifies both propositions. Seniority-earnings profiles appear to be steeper in the union-sector, while occupational expertise is estimated to have a more significant role in non-union jobs.

Keywords: Human Capital, Wage Premia, Trade Unions

JEL Classification: J24, J31, J51, J41

Suggested Citation

Zangelidis, Alexandros, Seniority Profiles in Unionised Workplaces: Do Unions Still Have the Edge? (October 2004). Centre for European Labour Market Research Working Paper No. 2004-09, Available at SSRN: https://ssrn.com/abstract=731626 or http://dx.doi.org/10.2139/ssrn.731626

Alexandros Zangelidis (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

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