Nonwage benefits as a limited-dependent variable: Implications for the impact of unions

Abstract

To better delineate the role of unionism in influencing the provision of nonwage benefits, this article argues that benefits should be viewed as a limited-dependent variable. Employing such an approach, the study finds that previous OLS estimates of the union effect embody substantial biases, which vary by industrial and employee-group classification. Moreover, the role of unionism — plan initiation versus ability to augment benefit levels at established plans — varies according to employee group, industrial classification, and the type of benefits.