The level and growth of union/nonunion relative wage effects, 1967–1977

This paper pools cross-section data to obtain an estimate of the overall effects of unions on relative wages for the period 1967 through 1977. We found the average union wage premium for all workers to be roughly 24 percent, but that this premium varies substantially between subgroups of workers. Our analysis showed that real wage rates increased faster in the union sector than in the nonunion sector between 1967 through 1977. However, we found that this relative growth pattern in wages was caused by economic conditions rather than in any fundamental shift in the power of unions. We wish to thank James S. Cunningham, H. Gregg Lewis, and John Pencavel for helpful comments.