Union premiums in the federal and private sectors: Alternative evidence from job queues

Although traditional wage estimates indicate a larger union-nonunion differential in the private sector compared to that in the federal sector, the role of non-wage benefits is ignored in such comparisons. A job queue approach shows that premiums to unionized employment (in terms of both wage and non-wage benefits) are lower in the federal sector than in the private sector. This approach not only overcomes the limitations of wage studies in examining the relative superiority of union over nonunion jobs in both sectors, but also strengthens their conclusions through a more appropriate alternative method. The author thanks John Heywood, Neil Garston, Richard Roseman, and Miles Finney for helpful comments. I also thank the editor and the referee for extremely useful suggestions.