Unions, Establishment Size, and Intra-Industry Threat Effects

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Abstract
Using a sample of data on private-sector production workers from a May–June 1979 matched Current Population Survey, this study finds that whether a worker is covered by a union contract, and the proportion of an industry's production workers covered by union contracts, have significantly different effects on worker earnings across establishments of different size. The pattern of findings suggests that large nonunion employers tend to match the union wage scale at all levels of unionism in their industry; medium-size nonunion employers match the union scale only as the union presence in their industry looms large; and small nonunion employers maintain wages below the union rate at all levels of union organization of their industry.

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