Empirical Findings
- Union members and other workers covered by collective agreements get, on average, a wage markup over their nonunionized (or uncovered) counterparts. Such a markup is typically 5 to 10 percent in industrial countries.
- Unions tend to equalize the income distribution, especially between skilled and unskilled workers.
- The welfare loss associated with unions is small, and no more than 0.2 to 0.5 of GDP, which is similar to monopolies in product markets. 1
Read more about this topic: Collective Bargaining
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