NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Longitudinal Analyses of the Effects of Trade Unions

Richard B. Freeman

NBER Working Paper No. 1207
Issued in September 1983
NBER Program(s):   LS

This paper examines how measurement error biases longitudinal estimates of union effects. It develops numerical examples, statistical models, and econometric estimates which indicate that measurement error is a major problem in longitudinal data sets, so that longitudinal analyses do not provide the research panacea for determining the effects of unionism (or other economic forces) some have suggested. There are three major findings:1) The difference between the cross-section and longitudinal estimates is attributable in large part to random error in the measurement of who changes union status. Given modest errors of measurement, of the magnitudes observed,and a moderate proportion of workers changing union status, also of the magnitudes observed, measurement error biases downward estimated effects of unions by substantial amounts. 2) Longitudinal analysis of the effects of unionism on nonwage and wage outcomes tends to confirm the significant impact of unionism found in cross-section studies, with the longitudinal estimates of both nonwage and wage outcomes lover in the longitudinal analysis than in the cross-section analysis of the same data set. 3) The likely upward bias of cross-section estimates of the effect of unions and the likely downward bias of longitudinal estimates suggests that,under reasonable conditions, the two sets of estimates bound the "true" union impact posited in standard models of what unions do.

download in pdf format
   (388 K)

email paper

This paper is available as PDF (388 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w1207

Published: Journal of Labor Economics, Vol. 2, no. 1, (January 1984): pp. 1-26. citation courtesy of

Users who downloaded this paper also downloaded these:
Mincer w0808 Union Effects: Wages, Turnover, and Job Training
Freeman w0248 Unionism and the Dispersion of Wages
Freeman w0292 The Effect of Trade Unionism on Fringe Benefits
Card w4195 The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?
Farber w1502 The Analysis of Union Behavior
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us