@techreport{NBERw15263,
 title = "Corporate Taxes and Union Wages in the United States",
 author = "R. Alison Felix and James R. Hines, Jr.",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "15263",
 year = "2009",
 month = "August",
 URL = "http://www.nber.org/papers/w15263",
 abstract = {This paper evaluates the effect of U.S. state corporate income taxes on union wages.  American workers who belong to unions are paid more than their non-union counterparts, and this difference is greater in low-tax locations, reflecting that unions and employers share tax savings associated with low tax rates.  In 2000 the difference between average union and non-union hourly wages was $1.88 greater in states with corporate tax rates below four percent than in states with tax rates of nine percent and above.  Controlling for observable worker characteristics, a one percent lower state tax rate is associated with a 0.36 percent higher union wage premium, suggesting that workers in a fully unionized firm capture roughly 54 percent of the benefits of low tax rates.},
}