ERIC Number: ED139905
Record Type: RIE
Publication Date: 1976-Sep
Queuing for Union Jobs and the Social Return to Schooling. Institute for Research on Poverty Discussion Papers. Report 360-76.
An analysis of the argument that a market imperfection (wage differentials and queuing caused by unions) raises the marginal social product (MSP) of college education above the average before-tax private wage premium (APP) for college (this discrepancy is called a union-Q-nality) focuses on verifying five hypotheses: (1) Workers with identical productive capabilities are paid more in unionized industry and this is a market distortion, (2) there is a negative correlation betweeen years of college and industry unionization, (3) college graduates do not take union jobs away from high school graduates, (4) from 1950 to the present, there has been a negative association between an industry's unionization and the size of its wage premium for schooling, and (5) relative wages are more flexible in the nonunion sector of the economy. The author, in narrative and tabular detail, examines the association between unionization and education of the work force as well as skill differentials and industry unionization; derives a formula for the MSP for a multisector, multi-input economy having a union wage differential and varying flexibility of relative wages; presents empirical specification and results of a regression analysis of 1968, 1973, and 1974 Current Population Surveys (CPS) supporting hypotheses 2, 4 and 5; and calculates the social return to schooling and compares it to private return. (EM)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Inst. of Education (DHEW), Washington, DC.
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.