Trade Unionism in Recession

By Duncan Gallie; Roger Penn et al. | Go to book overview

neglect of their more positive second face--that of the efficiency- producing collective voice and institutional response mechanism by which management and workers achieve mutually profitable communication and change. An examination of this face of trade unionism can be found in Nickellet al. ( 1989). But what can be concluded here with regard to the monopoly power of trade unions in Britain in 1986 is that trade union membership may create a union-non-union wage gap of some 6-8 per cent for unionized males and of some 14-19 per cent for unionized females.


NOTES
1.
As Greg Lewis ( 1986) makes clear, the computation of a trade union mark-up on wages would require the computation of a non-observed and counterfactual competitive wage that would exist in the absence of trade unions. What is generally available is the union-non-union wage gap. The existence of a significant unionized sector ensures that the non-union wage cannot be taken as representative of wages that would prevail in a world without unions.
2.
An interesting account of the development of economic thought on this and other topics of labour economics can be found in McNulty ( 1984) from which some of the discussion below is taken.
3.
The quote appears in McNulty ( 1984: 191) and is taken from the 1950 preface of the reprint of Dunlop ( 1944a).
4.
Much of the thinking in this area can be traced to Hirschman ( 1971).
5.
See Layard and Nickell ( 1987: 155-7) for further discussion.
6.
All measures of wages will be made in gross rather than net (after tax and national insurance contributions) terms.
7.
See Maddala ( 1983: ch. 11) for a general discussion.
8.
The 6,000 individuals come in roughly equal proportions from six areas of Britain: Aberdeen, Coventry, Kirkcaldy, Northampton, Rochdale, and Swindon. The data used here were collected in June, July, and August 1986.
9.
Computer programs for data analysis were originally developed by Peter Elias and Christine Jones, Institute for Employment Research, University of Warwick, Coventry, and by Steven Kendrick, Research Centre for Social Sciences, University of Edinburgh.
10.
To facilitate the analysis, a series of dummy variables is used to represent what was in fact a range response. Thus 'works alone' or with

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