The Effect of Blue-Collar Unions on White-Collar Wages and Fringe Benefits

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Abstract
This study investigates the influence of blue-collar unions on the wages and fringe benefits of white-collar workers employed in the same establishment. The author uses establishment data on employee compensation in 1974, the last year such data were collected, to estimate these wage and fringe spillovers in the two-digit industries in the manufacturing sector. Wage spillovers appear in only three of 16 industries, with the effect ranging from 10 to 19 percent. For fringes, however, significant spillovers are evident in 12 industries, with effects ranging from 15 to 52 percent. Although the models estimated also allow for the influence of white-collar unions on white-collar wages and fringes, no such effects were observed.

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