Impact of deunionization 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 deunionization effect 0.002 0.018 0.021
Union impact on nonunion wages and standards -0.017 0.031 0.014
Share of inequality growth explained**
Direct deunionization effect 3.2% 40.3% 20.2%
Union impact on nonunion wages and standards -30.1 66.0 13.7
Total union effect -26.9 106.3 33.9
B. Female wage inequality trends*
Change in wage inequality 0.051 0.047 0.098
Direct deunionization effect -0.003 0.004 0.001
Union impact on nonunion wages and standards 0.036 0.024 0.019
Share of inequality growth explained**
Direct deunionization effect -5.2% 9.2% 1.7%
Union impact on nonunion wages and standards -10.9 50.6 18.7
Total union effect -16.1 59.8 20.4

* Percentage-point change in variance of log wages

** From original source, which used nonrounded data

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

View the underlying data on epi.org.