Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191763 
Year of Publication: 
2019
Series/Report no.: 
GLO Discussion Paper No. 315
Publisher: 
Global Labor Organization (GLO), Maastricht
Abstract: 
Union density in Mexico has been in decline since the 1980s. This paper provides ev- idence on the worker compensation gains (losses) made by males upon joining (leaving) a union. These are estimated using a nationally representative labour market survey covering 2005q1-2016q1. The transitions between non-union and union status are investigated using a difference-in-difference estimator. The findings suggest that joining a union is associated with modest wage gains, contrary to what the literature has shown for most industrialised nations. However, in contrast to this some union leavers are found to experience a decrease in wages. This paper also contributes to the wider literature by providing the first estimates of the longitudinal gain (loss) associated with joining (leaving) a union with respect to non-wage benefits. The findings show joining (leaving) a union increases (decreases) the probability of being in receipt of legally guaranteed benefits such as bonuses and paid holidays. This sug- gests that although union density may be in decline, unions still have an important role to play in voicing worker's preferences with respect to compensation and ensuring that employers comply with the law.
Subjects: 
unions
wages
Mexico
non-wage benefits
JEL: 
J31
J33
J51
Document Type: 
Working Paper

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