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- Publisher
- Oxford University Press
- Copyright
- © 1991 The Review of Economic Studies Limited
- ISSN
- 0034-6527
- eISSN
- 1467-937X
- DOI
- 10.2307/2297947
- Publisher site
- See Article on Publisher Site
Abstract
Abstract We present estimates of the union wage effect controlling for unmeasured individual effects, and subject the conventional fixed-effects model to specification tests. For PSID men the union wage effect is 5-8% after controlling for person effects, as opposed to 20% in cross-section. Omnibus tests based on an unrestricted reduced form and instrumental variables tests based on differencing are consistent with conventional models. Tests based on comparing those who enter and leave union coverage provide evidence against the usual model. We find evidence for interactions between union status and other variables even after controlling for person effects. This content is only available as a PDF. © 1991 The Review of Economic Studies Limited
Journal
The Review of Economic Studies – Oxford University Press
Published: Oct 1, 1991