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Author: Yang, Hae-Sung
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Yang, Hae-Sung |
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Union-Nonunion Wage Differential: A Human Capital Approach Ph.D. Dissertation, Tulane University, 1982 Cohort(s): Young Men Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Human Capital Theory; Occupational Investment; Unions; Wage Differentials The objective of this study is to empirically examine union-nonunion wage differential in the context of human capital theory. Previous theoretical and empirical studies explaining the union-nonunion wage differential are surveyed. Most recent empirical studies have shown that there exists a quite large wage differential of about 15 to 30 percent. In examining the underlying causes which bring it about, most conventional studies stand on the view of the wage differential as monopoly rent. This approach, however, does not explain several aspects of real phenomena. Recently, several theories which interpret the wage differential from different points of view have been developed. This study attempts to analyze the role of unions in the creation of wage differentials via their effect on investment in specific human capital. From the theoretical argument one testable hypothesis follows: the worker-financed stock of specific human capital would be increased under unionism, and thereby some portion of the allegedly higher wage of union workers would be explained by the return to increased union worker-owned specific human capital. The empirical content of the hypothesis is tested by the introduction of the interaction term between union dummy variable and rehire rate. The primary data for the study were taken from the NLS of Young Men. Cross-sectional results show that one-third or one-quarter of union wage premium might be credited to the specific human capital possessed by union members. Additionally, the empirical estimates from the wage change equation, which are utilized to take fuller advantage of the longitudinal nature of the data, provide some indirect evidence for the support of the hypothesis. |
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Bibliography Citation
Yang, Hae-Sung. Union-Nonunion Wage Differential: A Human Capital Approach. Ph.D. Dissertation, Tulane University, 1982. |