Table 4.36
Effect of union decline on male wage differentials, 1978–2011
| 1978 | 1989 | 2000 | 2011 | ||
|---|---|---|---|---|---|
| Percent of workers in union (“union coverage”) | |||||
| By occupation | White collar | 14.7% | 12.1% | 11.2% | 10.3% |
| Blue collar | 43.1% | 28.9% | 23.1% | 17.8% | |
| Difference | -28.4 | -16.7 | -11.9 | -7.5 | |
| By education | College | 14.3% | 11.9% | 13.1% | 12.1% |
| High school | 37.9% | 25.5% | 20.4% | 14.9% | |
| Difference | -23.6 | -13.6 | -7.4 | -2.9 | |
| Union wage effect* | |||||
| By occupation | White collar | 0.2% | 0.0% | -0.2% | -0.2% |
| Blue collar | 11.5% | 6.7% | 4.3% | 3.5% | |
| Difference (change in differential) | -11.3 | -6.8 | -4.5 | -3.6 | |
| By education | College | 0.9% | 0.5% | 0.9% | 0.6% |
| High school | 8.2% | 5.5% | 3.1% | 2.6% | |
| Difference (change in differential) | -7.3 | -5.0 | -2.3 | -2.0 | |
| 1978–1989 | 1989–2000 | 2000–2011 | 1978–2011 | ||
| Change in wage differential** | White-collar/blue-collar | 5.0 | 4.2 | 0.9 | 10.1 |
| College/high school | 13.0 | 8.0 | 2.8 | 23.9 | |
| Change in union wage effect | White-collar/blue-collar | -4.6 | -2.3 | -0.9 | -7.7 |
| College/high school | -2.3 | -2.5 | -0.3 | -5.1 | |
| Deunionization contribution to change in wage differential*** |
White-collar/blue-collar | -90.5% | -55.2% | -91.8% | -76.1% |
| College/high school | -17.8 | -30.7 | -10.2 | -21.2 | |
* Union wage effect is "union wage premium" (estimated with simple human capital model plus industry and occupational controls) times union coverage; negative values in the difference row show how much unionization narrowed the wage gaps.
** Log wage gaps estimated with a simple human capital model
*** Change in union wage effect on wage differential divided by overall change in differential
Source: Authors' update of Freeman (1991) using Current Population Survey Outgoing Rotation Group microdata
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