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Title:Union membership effect on wage premiums: evidence from organized manufacturing industries in India PDF Logo
Authors:Bhandari, Amit K.
Issue Date:2008
Series/Report no.:IZA discussion papers 3747
Abstract:Trade unionism is a legislative system of organizing workers and raising voices for economic and social goods. As the process of global integration deepens the labour market become more flexible and fragmented, rendering collective organization more and more difficult. In this backdrop, the paper attempted to analyse the impact of union membership on wages in the organised manufacturing industries in India. The study uses a recent survey data on labour market in the organised manufacturing industries. The estimated wage premiums for union membership for permanent and contract workers are 56.7 per cent and 10.3 per cent respectively. Decomposing this wage gap indicates that union membership contributes majority of the wage differentials, indicating that unions able to reserve higher premium for their members. In general, it refutes the problem of free riding the benefits in the organized manufacturing industries in India.
Subjects:Trade unions
wage differentials
manufacturing
JEL:J51
Persistent Identifier of the first edition:urn:nbn:de:101:1-20081114107
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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