Does Union Membership Pay Off? Evidence from Organized Indian Manufacturing Industries
Published: 2010
Author(s) Name: Amit K. Bhandari
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Abstract
The process of global integration
deepens the flexibility in labour
market and renders collective
bargaining increasingly difficult.
This study has attempted to analyse
the impact of union membership on
wages in the organised manufacturing
industries in India. The
study uses a recent survey data on
labour market in the organised
manufacturing industries. The
estimated wage premium for union
membership is 23.5 percent for
permanent workers. Decomposing
this wage gap indicates that union
membership contributes a significant
portion of this wage differential,
that is, high unionization can
lower income inequality among
workers. This finding also turns
down the free riding problem in the
organized manufacturing industries.
Keywords :Global integration, Union membership
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