Unions and the structure of earnings inequality: Cross-national patterns

We examine differences in the structure of earnings inequality for men in four advanced western industrialized nations that differ in the nature and extent of unionism: the United States, Canada, Norway, and Sweden. We argue that the economic effects of unionism depend on whether (1) the bargaining structures of labor markets are centralized or fragmented; and (2) the political organization can be characterized as a corporatist or a pressure-group system. We find some support for our principal hypotheses that cross-national differences in systems of collective bargaining and political institutions affect the size of the earnings gap between male union and nonunion members, as well as the extent of wage dispersion among unionized workers.