Union/Non-Union Wage Differential

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Union/Non-Union Wage Differential

The amount a union member is paid compared to the amount a non-union member is paid for approximately the same service. Almost always, a union member is paid more. The differential helps measure the effectiveness of unions. A highly effective union is good for employees but increases the costs of doing business, which some believe to be detrimental to economic growth.
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References in periodicals archive ?
This is consistent with the result of Chandler [1994] that shows that an increase in the probability of a city considering privatization of its sanitation services decreases the union non-union wage differential. On the other hand, outsourcing does not necessarily reduce public sector wages, and its effectiveness is dependent on the credibility of the threat of privatization and the ability of the union to influence the likelihood of the outcome.
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