The relationship between employers and employees based on the argument that inequality is all about

The conditions of human life have not only been changed, but revolutionized, within the past few hundred years. In former days there was little difference between the dwelling, dress, food, and environment of the chief and those of his retainers. The Indians are today where civilized man then was. When visiting the Sioux, I was led to the wigwam of the chief.

The relationship between employers and employees based on the argument that inequality is all about

“The Gospel of Wealth”

Some of the conclusions are: Unions reduce wage inequality because they raise wages more for low- and middle-wage workers than for higher-wage workers, more for blue-collar than for white-collar workers, and more for workers who do not have a college degree.

Strong unions set a pay standard that nonunion employers follow. The impact of unions on total nonunion wages is almost as large as the impact on total union wages.

The most sweeping advantage for unionized workers is in fringe benefits. Unionized workers receive more generous health benefits than nonunionized workers. Unionized workers receive better pension plans.

Because unionized workers are more informed, they are more likely to benefit from social insurance programs such as unemployment insurance and workers compensation.

The relationship between employers and employees based on the argument that inequality is all about

Unions are thus an intermediary institution that provides a necessary complement to legislated benefits and protections. The union wage premium It should come as no surprise that unions raise wages, since this has always been one of the main goals of unions and a major reason that workers seek collective bargaining.

How much unions raise wages, for whom, and the consequences of unionization for workers, firms, and the economy have been studied by economists and other researchers for over a century for example, the work of Alfred Marshall. Table 1 provides several estimates of the union hourly wage premium based on household and employer data from the mid- to late s.

All of these estimates are based on statistical analyses that control for worker and employer characteristics such as occupation, education, race, industry, and size of firm. Therefore, these estimates show how much collective bargaining raises the wages of unionized workers compared to comparable nonunionized workers.

The data most frequently used for this analysis is the Current Population Survey CPS of the Bureau of Labor Statistics, which is most familiar as the household survey used to report the unemployment rate each month.

The CPS reports the wages and demographic characteristics age, gender, education, race, marital status of workers, including whether workers are union members or covered by a collective bargaining contract, and employment information e. Using these data, Hirsch and Macpherson found a union wage premium of Another important source of workplace information, employer surveys, has advantages and disadvantages.

On the plus side, wages, occupation, and employer characteristics—including the identification of union status—are considered more accurate in employer-based data.

The disadvantage is that data from employers do not include detailed information about the characteristics of the workers e. Pierce a used the new Bureau of Labor Statistics survey of employers, the National Compensation Survey, to study wage determination and found a union wage premium of Since unions have a greater impact on benefits than wages see Freemanestimates of the union premium for wages alone are less than estimates of the union premium for all compensation wages and benefits combined.

A study by Pierce estimates the union premium for wages at A later section reviews the union impact on specific fringe benefits such as paid leave, health insurance, and pensions. Some researchers have argued that union wage premiums are significantly underestimated by some measurements.

The increase in imputations has, Hirsch says, created an increasing underestimate of the union wage premium. Consequently, unions lessen wage inequality. The standard explanation for this result is that unions standardize wages by decreasing differentials across and within job positions Freeman so that low-skilled workers receive a larger premium relative to their alternative nonunion wage.

The larger union wage premium for those with low wages, in lower-paid occupations and with less education is shown in Table 2.

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For instance, the union wage premium for blue-collar workers in Likewise, the union wage premium for high school graduates, Gundersen estimated the union wage premium for those with a high school degree or less at As Table 2 shows, the union wage premium was far greater among low-wage workers Unions reduce wage inequalities because they raise wages more at the bottom and in the middle of the wage scale than at the top.

Lower-wage, middle-wage, blue-collar, and high school educated workers are also more likely than high-wage, white-collar, and college-educated workers to be represented by unions see Table 2. That unionization lessens wage inequality is also evident in the numerous studies that attribute a sizable share of the growth of wage inequality since to the erosion of union coverage Freeman ; Card ; Dinardo et al.

The relationship between employers and employees based on the argument that inequality is all about

This is especially the case among men, where steep declines in unionization among blue-collar and non-college-educated men has led to a rise in education and occupational wage gaps. Thus, the union impact on benefits is even more critical to the lives of workers now than in the past.

This section presents evidence that unionized workers are given employer-provided health and pension benefits far more frequently than comparable nonunion workers.

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Moreover, unionized workers are provided better paid leave and better health and pension plans. The previous section reviewed data that showed that unions have had a greater impact in raising benefits than in raising wages. This section examines the union effect on particular benefits, primarily paid leave, health insurance, and pensions.On the plus side, wages, occupation, and employer characteristics—including the identification of union status—are considered more accurate in employer-based data.

The disadvantage is that data from employers do not include detailed information about the characteristics of the workers (e.g. education, gender, race/ethnicity). scrutiny. The myth of equality in the employment relation takes the latter form. It is commonplace that employers and employees are not on equal footing.

The inequality between them is multi-dimensional. Employers have more wealth.1 Employers have more bargaining power.2 Owners and managers are usually of higher social status.3 1.

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The problem of labor market monopsony—buyer power among employers—has gotten increasing attention in recent years, including in my Roosevelt Institute paper with Roosevelt fellow Mike Konczal, in a Council of Economic Advisors issue brief, and in a widely-circulated paper by economist Simcha Barkai.

The basic idea of monopsony is that if employers . Related posts: From the Archive: Why Unions Are Bad For Companies, Employees and Customers ; Unions Restrict What Workers Can Get Paid ; Private vs Public vs Federal Unions: Weighing in On Wisconsin.

From the era of slavery to the rise of Donald Trump, wealthy elites have relied on the loyalty of poor whites. All Americans deserve better. .

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