Unions and Interindustry Wage Differentials

Arbache, Jorge Saba; Carneiro, Francisco

doi:10.1016/s0305-750x(99)00090-x

Cited by 25 publications

(14 citation statements)

References 30 publications

(32 reference statements)

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“…More recently, Arbache and Carneiro (1999) detect inter-regional and inter-industry differences in wages due to union power in Brazil. Azzoni and Servo (2002) examine wage differentials among the largest metropolitan regions in Brazil in the 1990s and show that, although the cost of living does have a role in explaining wage inequality in Brazil, the remaining regional differentials are still important.…”

mentioning

confidence: 99%

Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Freguglia

Filho

2011

Ann Reg Sci

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This paper uses administrative data to follow Brazilian workers over time and examine what happens to the inter-regional wage differentials after controlling for unmeasured workers' characteristics that are fixed over time. Since the data allow us to track the same workers over the years, we are in the unusual position of obtaining the individual wages before and after the migration process. As a significant share of workers changed States in the sample period, it is possible to examine to what extent the wage differentials reflect the concentration of high-skilled individuals in some States. The results show that the overall wage variability across States drops to almost one third of its original value and the ranking of the State effects is significantly altered after we take into account the workers' fixed effects. A great deal of the inter-regional differentials, therefore, reflects differences in the average ability of workers across States. JEL Classification

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confidence: 99%

Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Freguglia

Filho

2011

Ann Reg Sci

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“…Existing studies of Latin America suggest positive but modest union wage effects. Cassoni, Labadie, and Fachola () and Arbache and Carneiro () obtain union wage gap estimates below 10 percent for Uruguay and Brazil. In contrast to the literature from developing countries, Arbache () finds union coverage in Brazilian manufacturing during the early 1990s to be positively correlated with wage dispersion, which he suggests is related to unmeasured heterogeneity between union workers across different sectors of the economy…”

Section: How Do Unions Affect Wages?mentioning

confidence: 98%

Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas

Rios‐Avila

Hirsch

2013

Industrial Relations

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Using a common methodology, the effects of unions on wage levels and wage dispersion are estimated for two neighboring countries, Bolivia and Chile, and for the U.S. The analysis shows that unions have broadly similar effects on the wage distribution within these three economies. The findings suggest that the political economy of unions, coupled with market constraints on labor costs, produce commonality in union wage effects that transcend other economic and institutional differences.JEL Classification: J31, J51

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“…Individual LACs, most notably Argentina and Uruguay, deviated from the aggregate pattern because they reached their peak growth rates already before 1914, due to the heavy influx of immigrants, see Frankema (2009b: Third, Latin American labor market reforms left ample space for rent-seeking behavior. When the principles of collective wage bargaining and central wage setting during the ISI era were replaced by a decentralized system of wage bargaining (Arbache and Carneiro 1999), a trade-off emerged between wage demands and mass lay-offs. Some categories of employees remained protected by preferential treatments, however.…”

Section: Theories and Hypotheses Of Latin American Wage Inequalitymentioning

confidence: 99%

“…This can explain part of the excessive earnings generated in the oil-related industry in Brazil (Colistete 2007). Arbache and Carneiro also argue that the differences in the bargaining power of trade unions were substantial (Arbache and Carneiro 1999). Carneiro reports evidence of "pervasive" rent sharing in the late 1980s and early 1990s in industries with high monopolistic market power such as the petrochemical industry (Carneiro 1998: 150-1).…”

Section: Explaining Long-term Wage Inequality Trends In Latin Americamentioning

confidence: 99%

Industrial Wage Inequality in Latin America in Global Perspective, 1900–2000

Frankema

2011

St Comp Int Dev

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Standard economic theories of wage inequality focus on the factor-biased nature of technological change and globalization. This paper examines the long-run development of industrial wage inequality in Latin America from a global comparative perspective. We find that wage inequality was comparatively modest during the first half of the twentieth century, but rising much faster during the postwar era than in other industrial countries. In-depth analyses of wage inequality trends in Argentina, Brazil, and Chile confirm this pattern, but also reveal notable country peculiarities. In Argentina and Chile, trend breaks coincided with large politicalinstitutional shocks while in Brazil, wage inequality increased unabated under the wage regulation policies of successive post-war administrations. We argue that without taking national policies with respect to education and the labor market into account, economic theory cannot explain "Latin American" patterns of wage inequality.

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Unions and Interindustry Wage Differentials

Cited by 25 publications

References 30 publications

Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas

Industrial Wage Inequality in Latin America in Global Perspective, 1900–2000

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