Union-Nonunion differentials and establishment size: Evidence from the NLSY

We provide new empirical evidence on union-nonunion differentials using the 1990 wave of the National Longitudinal Surveys of Youth (NLSY) data set which allows us to examine a broader set of fringe benefits than most other studies and provides a rich set of control variables. Our major finding is that the union effect decreases with establishment size for both components of the compensation structure, i.e., wages and fringe benefits. An earlier version of this paper was presented at the Southern Economic Association conference in Washington, DC in 1996. We thank Tom Hyclak and other session participants. We also acknowledge the financial support from Ade Howe Kent Fund. The usual disclaimer applies.