Black South African Unions: Relative Wage Effects in International Perspective

Moll, Peter

doi:10.2307/2524871

Cited by 29 publications

(42 citation statements)

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“…If both groups had the same .~, then the wage gap would be entirely due to the differences in the 13s or, in other words, to the union effects on wage determination. Table 1 are lower than previous estimates of the union wage gap for manual and semi-skilled workers in developed countries, as summarized in Booth (1995) and Lewis (1986), and also lower than those estimated for developing countries, as reported in Standing (1992), Moll (1993), and Panagides and Patrinos (1994). The figures for Brazil are also perhaps rather lower than might have been expected given that union density in manufacturing is as high as 39 percent.…”

Section: Do Unions Raise Wages?contrasting

confidence: 57%

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Do unions always decrease wage dispersion? The case of Brazilian manufacturing

Arbache

1999

J Labor Res

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The literature on the impact of unions on wages has established that unionized workers earn a wage premium when compared to their nonunion counterparts and that the dispersion of wages within the union sector is lower than in the nonunion sector. I examine the validity of these findings in the context of a developing country labor market and show that unionism does create a positive wage differential but that wage dispersion is greater in the union sector, These findings are explained by the greater variance in the characteristics of unionized workers, the vulnerability of nonunion workers to market conditions, and the structure of wage bargaining.

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Section: Do Unions Raise Wages?contrasting

confidence: 57%

“…Little attempt, however, has yet been made to assess the impact of unions on pay structure in developing countries. The exceptions are Standing's (1992) study for Malaysia, Moll's (1993) study for South Africa, and Panagides and Patrinos' (1994) investigation for Mexico.…”

Section: Introductionmentioning

confidence: 99%

Do unions always decrease wage dispersion? The case of Brazilian manufacturing

Arbache

1999

J Labor Res

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“…Various authors have recently come up with some estimates of the impact of South African trade unions on wages, using micro-economic data (Butcher and Rouse, 2001;Fallon and Lucas, 1997;Hofmeyr and Lucas, 2001;Moll, 1993Moll, , 1995Mwabu and Schultz, 1998;Rospabé, 2001). They reveal a significant wage differential between unionized and nonunionized workers, particularly significant for Blacks, but quite small for White workers.…”

Section: The Impact Of the Trade Unionsmentioning

confidence: 99%

“…26 A dummy Other union members indicates whether there are other persons in the household who are also union member. According to Moll (1993), this variable reflects household-specific tastes for unionization, such as political orientation and the willingness to invest union dues for the sake of long security and wage gains. We also include the ratio of young in the household to the number of wage earners (dependence ratio).…”

Section: The Data Set and Variables 21mentioning

confidence: 99%

Trade unions vs. statistical discrimination: Theory and application to post-apartheid South Africa

Azam

Rospabé

2007

Journal of Development Economics

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A simple model of statistical discrimination is analyzed, which captures some stylized facts of the South African labor market. It shows that this type of discrimination disappears when the wage rates are determined by efficient bargaining between a representative firm and a union, with endogenous membership. This may explain why the wage gap between Black and White workers in post-apartheid South Africa is smaller among unionized workers than among non-unionized ones.

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“…Without the extensions, employers could find themselves at a competitive disadvantage and therefore conclude that the costs of participating in the employer association outweigh the benefits. Critics argue that the extensions are particularly burdensome to small employers, leading to closures and discouraging start-ups, and generally interfere with the normal dynamics of the labor market (Moll 1996;Standing, Sender, and Weeks 1996).12 A key question is, therefore, the extent to which these extensions are binding. "1Another purpose for which the extensions were designed was to protect white workers from competition from African workers.…”

Section: What Are Industrial Councils?mentioning

confidence: 99%

Wage Effects of Unions and Industrial Councils in South Africa

Butcher¹,

Rouse²

2001

ILR Review

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Using data for 1995, the authors estimate union wage premia of about 20% for African workers and 10% for white workers in South Africaroughly similar to estimates reported for other countries, including the United States. African nonunion workers who were covered by industrial council agreements received a premium of 6-10%; the premium was positive but not statistically significant for whites. Although the union/nonunion wage gap was smaller inside the industrial council system than outside it for Africans, the total union premium for union members covered by an industrial council agreement was similar to the union premium outside the industrial council system. Among Africans, the industrial council and union wage gaps were largest among low-wage workers. These findings, the authors conclude, do not support the common claim that a high union wage premium and the industrial council system are the primary causes of high unemployment in the South African labor market.nions played a crucial role in South Africa's historic transition from the apartheid era. Now, however, they are coming under fire as major contributors to inflexibility in the South African labor market. Some argue that an unusually high union wage premium and highly centralized collective bargaining are important

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Black South African Unions: Relative Wage Effects in International Perspective

Cited by 29 publications

References 0 publications

Do unions always decrease wage dispersion? The case of Brazilian manufacturing

Do unions always decrease wage dispersion? The case of Brazilian manufacturing

Trade unions vs. statistical discrimination: Theory and application to post-apartheid South Africa

Wage Effects of Unions and Industrial Councils in South Africa

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