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Union Density Effects on Productivity and Wages

Bryson, A; Dale-Olsen, H; Barth, E; (2020) Union Density Effects on Productivity and Wages. The Economic Journal , Article ueaa048. 10.1093/ej/ueaa048. (In press). Green open access

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Abstract

We exploit changes in tax subsidies for union members in Norway to identify the effects of changes in firm-level union density on productivity and wages. Increased deductions in taxable income for union members led to higher membership rates and contributed to a lower decline in union membership rates over time in Norway. Accounting for selection effects and the potential endogeneity of unionisation, the results show that increasing union density at the firm level leads to a substantial increase in both productivity and wages. The wage effect is larger in more productive firms, consistent with rent-sharing models.

Type: Article
Title: Union Density Effects on Productivity and Wages
Open access status: An open access version is available from UCL Discovery
DOI: 10.1093/ej/ueaa048
Publisher version: https://doi.org/10.1093/ej/ueaa048
Language: English
Additional information: © The Author 2020. Published by Oxford University Press on behalf of Royal Economic Society. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Keywords: J01 - Labor Economics: GeneralJ08 - Labor Economics PoliciesJ50 - GeneralJ51 - Trade Unions: Objectives, Structure, and Effects
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > School of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute
URI: https://discovery.ucl.ac.uk/id/eprint/10094821
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