Monday, February 23, 2009

Unions and Upward Mobility for Women Workers

In 2007, women made up 45 percent of union members. If the share of women in unions continues to grow at the same rate as it has over the last 25 years, women will be the majority of the unionized workforce by 2020.

This paper uses the most recent data available to examine the impact of unionization on the pay and benefits of women in the paid workforce. The data suggest that even after controlling for systematic differences between union and non-union workers, union representation substantially improves the pay and benefits that women receive.

On average, unionization raised women's wages by 11.2 percent - about $2.00 per hour - compared to non-union women with similar characteristics. Among women workers, those in unions were about 19 percentage points more likely to have employer-provided health insurance and about 25 percentage points more likely to have an employer-provided pension.

For the average woman, joining a union has a much larger effect on her probability of having health insurance (an 18.8 percentage-point increase) than finishing a four-year college degree would (an 8.4 percentage-point increase, compared to a woman with similar

Similarly, unionization raises the probability of a woman having a pension by 24.7 percentage points,compared to only a 13.1 percent increase for completing a four-year college degree (relative to a high school degree). For the average woman, a four-year college degree boosts wages by 52.6 percent, relative to a woman with similar characteristics who has only a high school degree. The comparably estimated union wage premium is 11.2 percent - over 20 percent of the full four-year college effect.

Read the full report.

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