Patterns of union membership and relative wages

Abstract

This paper, using the Panel Study of Income Dynamics, examines the effects of union membership on the wages of white males. The empirical relationship between current wage and union status is estimated controlling for union status in years before and after the current year. The resulting status profiles are four years long in contrast to one or two years used previously. Results indicate that wage changes experienced when workers join or leave unions vary significantly and systematically across these profiles. For example, a status change that appears to be long-term is associated with larger absolute wage changes than short-term changes in status.