NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effect of Trade Unionism on Fringe Benefits

Richard B. Freeman

NBER Working Paper No. 292 (Also Reprint No. r0248)
Issued in February 1982
NBER Program(s):   LS

This paper analyzes the impact of unionism on the fringes paid blue-collar workers using data on individual establishments. The main substantive finding is that trade unionism raises the fringe share of compensation, particularly pension and life, accident and health insurance. The magnitude of the effect is sufficiently large as to suggest that estimates which neglect fringes understate the union effect on compensation. The paper uses the data on the compensation of blue-collar and white-collar workers within an establishment to control for within-establishment pay policies and estimate the potential effect of blue-collar unionism on the fringes of white-collar workers.

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Published: Freeman, Richard B. "The Effect of Unionism on Fringe Benefits." Industrial& Labor Relations Review, Vol. 34, No. 4, (July 1981), pp. 489-509.

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