CLS Working Papers, Centre for Labour Market and Social Research, Aarhus School of Business, University of Aarhus
No 01-7:
Assymetries in Union Relative Wage Effects in Ghanian Manufacturing - An analysis Applying Quantile Regressions
Niels-Hugo Blunch and Dorthe Verner
Abstract: This paper analyzes the earnings determinants in the
Ghanian manufacturing industries, focussing on the impact of unions in
terms of the so-called "union relative wage effect" and the possible
asymmetries of this impact across the earnings distribution. We find
evidence of a union relative wage effect ocurring via two distinct
channels. First, we find a direct effect through individual union
membership. This is the standard "union premium" well known from the
empirical litterature on unions. Second, we find evidence of a spillover
effect to non-union members. In addition, we find evidence of an additional
union effect coming through via firm-specific training. We confirm our
conjecture of an asymmetry in the union relative wage effect, unions mainly
benefiting the lower end of the wage distribution. This is in line with
previous research, which generally finds that unions increase income
equality and reduce wage discrimination. Evaluating the non-union
sub-sample using the estimated union wage structure further establishes the
presence of structural differences between the union and non-union segments
of the Ghanian manufacturing industry in that for given characteristics, a
worker in the union sector earns more than a worker in the non-union
sector.
Keywords: Africa; Ghana; Human capital; Union relative wage effect; Quantile regression; (follow links to similar papers)
JEL-Codes: J31; J51; (follow links to similar papers)
35 pages, March 1, 2001
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