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Matching and Inverse Propensity Weighting Estimates of the Union Wage Premium: Evidence from Canada, 1997–2014
Author(s) -
Campolieti Michele
Publication year - 2018
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12202
Subject(s) - propensity score matching , matching (statistics) , estimator , economics , covariate , weighting , econometrics , wage , counterfactual conditional , survey data collection , labour economics , statistics , mathematics , counterfactual thinking , psychology , medicine , social psychology , radiology
I estimate the union wage premium for private‐sector workers using Canadian data from Statistics Canada's Labour Force Survey from 1997 to 2014, examining the trend and gender differences in the premium. I obtain my estimates using matching and inverse propensity weighting estimators, which form counterfactuals for union workers. These estimators create better covariate balance and can also be used to address the bias that arises from the log transformation of wages.