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Estimation and Testing of the Union Wage Effect Using Panel Data
Abstract
We present estimates of the union wage effect controlling for unmeasured individual effects, and subject the conventional fixed-effects model to specification tests. For PSID men the union wage effect is 5-8% after controlling for person effects, as opposed to 20% in cross-section. Omnibus tests based on an unrestricted reduced form and instrumental variables tests based on differencing are consistent with conventional models. Tests based on comparing those who enter and leave union coverage provide evidence against the usual model. We find evidence for interactions between union status and other variables even after controlling for person effects.
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“For instance, Jakubson (1991) has found a 8.3% union membership premium using that strategy, in a sample of American males from the PSID followed from 1976 to 1980.”
From Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects (2020) · cites this paper as Jakubson (1991)
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Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects
de Chaisemartin, C., & D’Haultfœuille, X. (2020) · American Economic Review · doi:10.1257/aer.20181169 · Cited by 5,031
“Table 4 shows that β ˆ fe = 0.107 ( standard error = 0.030 ) , a result close to that of the worker fixed effects regressions in Jakubson ( 1991 ) and Vella and Verbeek ( 1998 ) .”
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Metadata
- Authors
- Jakubson, G.
- Affiliations
- Cornell University (US)
- Corresponding author
- Jakubson, George
- Venue
- The Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 1991-10
- Volume
- 58
- Issue
- 5
- Pages
- 971
- ISSN
- 0034-6527 (ISSN-L)
- OpenAlex
- W2109819847
- Cited by
- 104
- References
- 0
- Citations by year
- 2023: 2 · 2022: 2 · 2021: 1 · 2020: 4 · 2018: 5 · 2017: 3 · 2016: 1 · 2015: 6 · 2014: 3 · 2013: 2 · 2012: 1
- FWCI
- 2.59
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Review of Economic Studies (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Dialnet (Universidad de la Rioja)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Business, Management and Accounting › Industrial relations › Labor Movements and Unions
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
- Keywords
- union wage effects, union membership, fixed effects model, specification tests, omnibus test, instrumental variables, panel data, Panel Study of Income Dynamics
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