Publisher:
University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier
Abstract:
Using data from the Current Population Survey (CPS) for 1994-2023, we show that the union wage mark-up for immigrants averages about 0.1 log points, 0.04 log-points less than that for natives. Therefore, unionization is less beneficial for immigrants than natives in the United States. The difference is most pronounced for males and low-skilled blue-collar workers. It cannot be observed for white-collar workers, individuals born in Mexico, and second-generation immigrants. An IVapproach indicates that the wage effects can be interpreted causally. Our results suggest that differences in the union wage mark-up may be due to disparities in bargaining power or result from discriminatory trade union objectives. Our findings point to the importance of labor market institutions in shaping the economic assimilation of immigrants.