Working Paper: NBER ID: w19061
Authors: Maury Gittleman; Morris M. Kleiner
Abstract: Recent estimates in standard models of wage determination for both unionization and occupational licensing have shown wage effects that are similar across the two institutions. These cross-sectional estimates use specialized data sets, with small sample sizes, for the period 2006 through 2008. Our analysis examines the impact of unions and licensing coverage on wage determination using new data collected on licensing statutes that are then linked to longitudinal data from the National Longitudinal Survey of Youth (NLSY79) from 1979 to 2010. We develop several approaches, using both cross-sectional and longitudinal analyses, to measure the impact of these two labor market institutions on wage determination. Our estimates of the economic returns to union coverage are greater than those for licensing requirements.
Keywords: unionization; occupational licensing; wage determination; labor market institutions
JEL Codes: J18; J24; J44; J5; J51; J82; J88; K2; K31; L43; L5; L51; L98
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| switching into licensed occupations (J44) | wages (J31) |
| switching out of licensed occupations (J44) | wages (J31) |
| union coverage (J51) | wages (J31) |
| occupational licensing (J44) | wages (J31) |
| union coverage (J51) | wage increase (J31) |