Unions and Wage Inequality: The Roles of Gender, Skill and Public Sector Employment
Overview
Paper Summary
Unionization continues to reduce wage inequality, especially in the public sector. While earlier studies found that unions reduced wage inequality for men but not women, this difference disappears when comparing union and non-union workers in the same sector. The key difference in union impacts is now between the public and private sectors, not between males and females.
Explain Like I'm Five
Scientists found that groups called 'unions' help everyone get paid more fairly, like making sure boys and girls get similar pay. They are especially good at this in jobs like working for the government.
Possible Conflicts of Interest
None identified
Identified Limitations
Rating Explanation
This paper provides a comprehensive analysis of the relationship between unionization and wage inequality in Canada and the U.S. It addresses important limitations of earlier research by disaggregating by sector and accounting for changes in the composition of the unionized workforce. The findings are robust and have important policy implications. However, the reliance on observational data makes it difficult to definitively establish causality.
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