1. C H A P T E R The Economic Impact of Unions 12

2. © 2003 South-Western 2 Unadjusted Union–Nonunion Earnings Differentials, 2001 Table 12.1 Source: Bureau of Labor Statistics, Employment and Earnings (January 2002), Tables 42, 43. National averages are calculated as weighted averages using the industry statistics.

3. © 2003 South-Western 3 The Spillover and Threat Effects Figure 12.1

4. © 2003 South-Western 4 The Relationship Between the Percentage Organized and the Size of the Union Wage Effect Figure 12.2

5. © 2003 South-Western 5 The Union–Nonunion Wage Differential over Time, 1920–2000 Figure 12.3 SOURCES: George E. Johnson, “Changes over Time in the Union–Nonunion Wage Differential in the United States,” in Jean-Jacques Rosa, ed., The Economics of Trade Unions: New Directions (Boston: Kluwer Nijhoff, 1984): 5. The data for 1990 to 2000 are from Barry Hirsch and Edward Schumacher, “Private Sector Union Density and the Wage Premium: Past, Present, and Future,” Journal of Labor Research 22 (Summer 2001): Figure 6.

6. © 2003 South-Western 6 Union Wage Effects in the Public Sector Table 12.2 SOURCES: (a) Stephen J. Trejo, “Public Sector Unions and Municipal Employment,” Industrial and Labor Relations Review 45 (October 1991): 166–80; (b) Timothy D. Chandler, “Sanitation Privatization and Sanitation Employees’ Wages,” Journal of Labor Research 15 (Spring 1994): 137– 53; (c) Harris L. Zwerling and Terry Thomason, “Collective Bargaining and the Determinants of Teachers’ Salaries,” Journal of Labor Research 16 (Fall 1995): 467–84; Caroline Minter Hoxby, “How Teachers’ Unions Affect Education Production,” Quarterly Journal of Economics 111 (August 1996): 671–718; and (d) Edward J. Schumacher and Barry T. Hirsch, “Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?” Industrial and Labor Relations Review 50 (July 1997): 557–79.

7. © 2003 South-Western 7 Employee Benefits Received by Union and Nonunion Private Sector Workers, 2001 Table 12.3 SOURCE: U.S. Bureau of Labor Statistics, News: Employer Costs for Employee Compensation (2002).

8. © 2003 South-Western 8 Estimates of the Union Impact on Wages Using Cross-Sectional Data Table 12.4 SOURCE: Constructed from David G. Blanchflower, “Changes over Time in Union Relative Wage Effects in Great Britain and the United States,” NBER Working Paper 6100 (July 1997): Tables 1, 2, 4, and 5.

9. © 2003 South-Western 9 The Union Wage Effect among Demographic and Occupational Groups, UK and the USA, 1993 Figure 12.4 SOURCE: Constructed from statistics provided in Blanchflower, “Changes over Time in Union Relative Wage Effects in Great Britain and the United States.”

10. © 2003 South-Western 10 Estimates of Union Impact on Wages Using Longitudinal Data Table 12.5 SOURCES: (a) Barry T. Hirsch and Edward J. Schumacher, “Unions, Wages, and Skills,” Journal of Human Resources 33 (Winter 1998): 201–19. (b) Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research (Winter 1998): 125–47.

11. © 2003 South-Western 11 Regression Estimates of Union–Nonunion Wage Differentials; Cross-Sectional Data Table 12A.1 SOURCE: Adapted from Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research 19 (Winter 1998): 125–47. T-ratios are in parentheses. Regressions also included a control for marital status, employment sector (public vs. private), and an intercept term.

12. © 2003 South-Western 12 Union–Nonunion Wage Effects: Longitudinal Data Table 12A.2 SOURCE: Adapted from Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research 19 (Winter 1998): 125–47. T-ratios are in parentheses.

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