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Seminario CEA-MIPP: «What Do (Thousands of) Unions Do? Union-Specific Pay Premia and Inequality», Speaker: Lorenzo Lagos (Brown)

Los invitamos al ciclo de  SEMINARIOS ACADEMICO CEA:

Cuándo: Miércoles 25 de marzo – 12:30 PM Santiago.

Dónde: Sala Consejo (401)- Beauchef 851, piso 4 | Departamento de Ingeniería Industrial.

Tema: What Do (Thousands of) Unions Do? Union-Specific Pay Premia and Inequality

Authors: Ellora Derenoncourt, François Gerard, Lorenzo Lagos, and Claire Montialoux

Speaker: Lorenzo Lagos (Brown)

Abstract:

We study the role of union heterogeneity in shaping wages and inequality among unionized workers. Using linked employer-employee data from Brazil and job moves both within and across multi-firm unions, we estimate over 4,800 union-specific pay premia. Unions differ substantially in the wage gains they can secure for workers, with a standard deviation of 7 log points. These union-specific pay premia vary in systematic ways. We find that unions with local representation, firm-level collective bargaining agreements, strike activity, collective governance, and skilled leaders capture higher pay premia. These same high-premium unions are also effective in other dimensions—like reducing exit and improving amenity take-up—and compress wages. A nationwide right-to-work reform causes wages to fall by 2.4% in markets dominated by high-premium unions and reveals that worker support for unions remains for high-premium unions that do not compress too much. Our findings show that unions are not a monolith—their structure and actions shape their wage effects, their equalizing role, and ultimately their support among workers.