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- Title
The size and structure of union-non-union wage differentials in Canadian industry.
- Authors
MacDonald, Glenn M.; Evans, John C.
- Abstract
This paper presents estimates of union--non-union wage differentials in Canadian manufacturing industries. The structure of a wage equation, derived from the aggregation process underlying industry average wages, allows us to construct the differentials. In estimating the wage equation, particular attention is given to the issue of correct specification of both the wage equation and the structure of the differentials. Whether the wage equation is treated as a structural equation or as the outcome of an aggregation process significantly affects the results. Proper treatment of omitted variables is also shown to be important. Further, the evidence indicates that the differentials must be estimated under the assumption that they vary across both skill groups and industries. Our estimate of the average union--non-union wage differential is 15.8 per cent.
- Subjects
CANADA; WAGE differentials; MANUFACTURING industries; LABOR unions
- Publication
Canadian Journal of Economics, 1981, Vol 14, Issue 2, p216
- ISSN
0008-4085
- Publication type
Article
- DOI
10.2307/134795