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Trade Unions, Collective Voice and Fringe Benefits*
Author(s) -
MILLER PAUL,
MULVEY CHARLES
Publication year - 1992
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1992.tb01758.x
Subject(s) - margin (machine learning) , compensation (psychology) , labour economics , longitudinal data , business , economics , collective bargaining , demographic economics , psychology , sociology , social psychology , demography , machine learning , computer science
The exit/voice model of the labour market predicts that unionized workers will enjoy a greater level of fringe benefits, both absolutely and as a share of total compensation, than non‐unionists. This is because unions can, through the medium of collective voice, communicate to management a picture of the preferences of the median worker. In non‐union settings, however, management responds to the perceived preferences of the young, mobile workers at the hiring margin and these typically place a low priority on fringe benefits relative to money wages. Using data from the A ustralian Longitudinal Survey it is found that the hypothesis is supported by the evidence for Australia.