Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/156390
Authors: 
Wunnava, Phanindra V.
Year of Publication: 
2017
Series/Report no.: 
GLO Discussion Paper 45
Abstract: 
It is evident that both male and female workers in medium/larger establishments receive not only higher wages but also have a higher probability of participating in benefit programs than those in smaller establishments. This reinforces the well-documented ‘size’ effect. Further, the firm size wage effects are much larger for men than women. The union wage effect decreases with establishment size for both genders. This supports the argument that large nonunion firms pay higher wages to discourage the entrance of unions (i.e., the ‘threat’ effect argument). In addition, the union wage premium is higher for males across firm sizes relative to females. This implies that unions in the large establishments may have a role to play in achieving a narrowing of the gender union wage gap. Further, given the presence of noticeable gender differences in estimated union effects on the different components of the compensation structure, unions should not treat both genders similarly with respect to wages and benefits.
Subjects: 
size effect
threat effect
fringe benefits
compensation
gender
union-nonunion
random effects
JEL: 
J16
J31
J32
J51
Document Type: 
Working Paper

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