Recent trends in the union wage premium

Estimates of union-nonunion wage differentials are updated by examining a wide variety of subgroups in the general population. Variations in union wage premiums are tracked over a 15-year period, allowing inter-temporal comparisons that are not usually available. One important finding is that union wage premiums have been generally rising since 1972–1973. It also appears that females and nonwhites no longer gain the huge payoffs from unionism that evidence has suggested. The impact of race and education on union wage premiums is weighed, and there is an examination of how levels of education, association with blue-collar or white-collar occupations, and employment in specific industries affect union premiums. The author thanks Professor Jack Skeels for invaluable comments and Northern Illinois University for financial support.