The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?
Economists have long suggested that labor unions suffer a free rider problem. The argument is that, since union-set wages are available to all workers covered by unions irrespective of their union status, and union membership entails costs, workers will only join if they are coerced or are offered non-wage goods that they value above membership costs. Yet U.S. and British empirical research has found a substantial union membership wage premium among private-sector union-covered workers,...[Show more]
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|Source:||Industrial and Labor Relations Review|