Unions, employment risks, and market provision of employment risk differentials

Michael J. Moore*

*Corresponding author for this work

Research output: Contribution to journalArticle

15 Scopus citations

Abstract

The role of unions in providing compensating differentials for wage and hours risk is analyzed. Unions are shown to increase wages for workers in more risky jobs. A negative compensating differential for nonunion workers is taken as evidence of worker-specific, or supply-side risk. This component of risk is removed by controlling for union status, based on the belief that unionized firms will be more likely to filter out high-risk unproductive workers. Hours risk is compensated for in the labor market, while wage risk is not.

Original languageEnglish (US)
Pages (from-to)57-70
Number of pages14
JournalJournal of Risk and Uncertainty
Volume10
Issue number1
DOIs
StatePublished - Jan 1 1995

Keywords

  • compensating differentials
  • hours risk
  • unions
  • wage risk

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Unions, employment risks, and market provision of employment risk differentials'. Together they form a unique fingerprint.

  • Cite this