Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191417
Authors: 
Addison, John T.
Portugal, Pedro
Vilares, Hugo
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7392
Abstract: 
Using matched employer-employee-contract data for Portugal – a country with near-universal union coverage – we find evidence of a sizable effect of union affiliation on wages. Gelbach's (2016) decomposition procedure is next deployed to ascertain the contributions of worker, firm, match, and job-title heterogeneity to the union wage gap. Of these the most important is the firm fixed effect, followed at some distance by union workers gaining from elevated job titles and/or more generous promotion policies. For its part, unobserved worker quality plays only a very weak role, while there is even less suggestion that improved match quality bolsters the union premium.
Subjects: 
union density
union wage gap
worker/form/job-title fixed effects
match quality
Gelbach decomposition
Portugal
JEL: 
J31
J33
J41
J51
J52
Document Type: 
Working Paper

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