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Unions and Managerial Pay

File(s)
Hallock36_Unions_and_Managerial_Pay.pdf (1003.78 KB)
Permanent Link(s)
https://hdl.handle.net/1813/74751
Collections
ILR Working Papers
Faculty Publications - Human Resource Studies
Author
DiNardo, John
Hallock, Kevin F.
Pischke, Jorn-Steffen
Abstract

Unions compress the wage distribution among workers covered by union contracts. We ask whether unions also have an effect on the managers of unionized firms. To this end we collected and assembled data on unionization and managerial pay within firms and industries in the U.S. and across countries. Generally, we find a negative correlation between executive compensation and unionization in our cross-section data, but no relationship of changes in unionization on the growth of compensation of executives over time. Using NLRB elections data, we find that a loss of union members due to decertification elections is associated with higher CEO pay, although our estimates are imprecise. With CPS data we consistently find that where unions are stronger, fewer managers are employed.

Date Issued
1997-12-01
Keywords
unions
•
management
•
wage distributions
•
managerial pay
•
compensation
Rights
Required Publisher Statement: Copyright is held by the authors.
Type
article

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