The impact of changing union density on earnings inequality: Evidence from the private and public sectors

How changes in union density have contributed to the degree of inequality in US earnings is examined empirically using Current Population Survey data for 1977 and 1992. A decomposition of the change in the inequality index reveals that decreases in private-sector union density have accounted for abo...

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Bibliographic Details
Published in:Journal of labor research 1997-07, Vol.18 (3), p.425-437
Main Authors: Asher, Martin A, DeFina, Robert H
Format: Article
Language:English
Subjects:
Compensation
Decomposition
Gender
Income distribution
Income Inequality
Inequality
Labor relations
Labor unions
Males
Population
Private Sector
Public Sector
Statistical analysis
Studies
Trends
Union membership
Unionization
United States of America
Wage differential
Wage rates
Wages & salaries
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Summary:How changes in union density have contributed to the degree of inequality in US earnings is examined empirically using Current Population Survey data for 1977 and 1992. A decomposition of the change in the inequality index reveals that decreases in private-sector union density have accounted for about 25% of the overall rise in earnings inequality during the past 15 years. Decompositions based on public-sector earnings indicate that increases in union density have produced inequality that is 29% below what it otherwise would have been. Changing union density accounts for 13% of the rise among prime aged males and only 4% among females and non-prime-aged males.
ISSN:0195-3613
1936-4768
DOI:10.1007/s12122-997-1048-x