Wages, union membership, and public sector bargaining legislation: simultaneous equations with an ordinal qualitative variable

Article Abstract:

A simultaneous equations model is given of unionization and teachers' wages, conditioned on the ordinal legislative regimes operative during the collective bargaining. An 3SNP estimator is also given to overcome the econometric problems created by the ordinal qualitative variable in simultaneous equations. It is concluded that the validity of the structural law-union wage relationship for the private interest theory of public sector bargaining regulation is upheld. Also, conventional dummy variable approaches used to estimate the effects of bargaining rights and related union security clauses on public sector wages may be misleading.

Laws, regulations and rules, Collective bargaining, Collective labor agreements

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Patterns of union membership and relative wages

Article Abstract:

The impact of union membership on the wages of white males is studied, with it shown that changes in wages occurring when workers join or leave a union vary considerably and systematically among the sample studied. After a description of the estimation of the framework and data, the model used to measure union and nonunion wage differences is presented and discussed. Empirical results are listed for the two-year and the four-year estimates.

Analysis, Labor relations, Working class, mathematical models

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The endogeneity of union status and the application of the Hausman Test

Article Abstract:

Union endogeneity in relative wage equations has been long recognized. Recently, a new specification test, parsimonious in its computational requirements, has been advocated. This paper investigates the suitability of the test in a switching regression framework and critiques its most widely cited application. (Reprinted by permission of the publisher.)

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