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Most unions demand standardized pay scales, maybe varying with seniority or experience. Slichter et alii (1960) say wage standardization is the most widely hera
by baruz 2y ago
Most unions demand standardized pay scales, maybe varying with seniority or experience. Slichter et alii (1960) say wage standardization is the most widely heralded union wage policy. Freeman (1980, 1984) showed that wages compress due to wage standardization at union shops.
Because wage dispersion and inequality is lower, if you consider your skills and experience extraordinary, you will not be getting pay commensurate with your perceived value to the company at a union shop. That provides a moat of sorts for incumbent workers against "rockstars," "10x," and higher-skilled workers deciding to join the company.
Slichter, S. H., Healy, J. J., and Livernash, E. R. (1960). _The Impact of Collective Bargaining on Management_.
Freeman, R. B. (1980) "Unionism and the dispersion of wages," _Industrial and Labor Relations Review_.
Freeman, R. B. (1984), "Longitudinal analyses of the effects of trade unions," _Journal of Labor Economics_