Table 3

Impact of decline in collective bargaining on wage inequality, 1973–2007

Change in wage inequality*
Between-group Within-group Total growth
A. Male wage inequality trends
Change in wage inequality 0.055 0.046 0.102
Direct collective bargaining (CB) effect 0.002 0.018 0.021
CB impact on uncovered wages and standards -0.017 0.031 0.014
Share of inequality growth explained**
Direct CB effect 3.2% 40.3% 20.2%
CB impact on uncovered wages and standards -30.1 66.0 13.7
Total CB effect -26.9 106.3 33.9
B. Female wage inequality trends
Change in wage inequality 0.051 0.047 0.098
Direct CB effect -0.003 0.004 0.001
CB impact on uncovered wages and standards 0.036 0.024 0.019
Share of inequality growth explained**
Direct CB effect -5.2% 9.2% 1.7%
CB impact on uncovered wages and standards -10.9 50.6 18.7
Total CB effect -16.1 59.8 20.4

* Change in variance of log wages

** From original source, which used nonrounded data

Table 3. Impact of decline in collective bargaining on wage inequality, 1973–2007. Data are from the author’s analysis of Western and Rosenfeld (2011, Table 2).

Source: Author's analysis of Western and Rosenfeld (2011, Table 2)

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