Unions, wages and hours

We examine union-non-union differentials in wages and hours in the United States over the last 50 years using data from the Current Population Survey (CPS). The regression-adjusted difference between union members’ and non-members’ hourly earnings has been falling since the Great Recession. The union differential in weekly wages has been more stable. Although it fell by around 5 log points during COVID it remains 15 log points. This weekly earnings differential arises from both a higher hourly wage of around 10 log points and longer working hours (5 log points). The working hours differential partly reflects unions’ ability to tackle under-employment, such that union workers work closer to the hours they desire than their non-union counterparts. The traditional focus on hourly wage differentials underplays the important role trade unions play in maintaining members’ weekly earnings by ensuring workers receive the paid hours they desire.