Two conclusions may be reached predicated on these studies.
The sensitiveness of this brings about the specification—a linear or nonlinear specification of union density—is observed in studies regarding the union danger impact. A linear specification assumes that little modifications at any degree have actually the exact same effect, while a nonlinear specification allows the union impact to vary at various quantities of unionization—perhaps less at low amounts and much more at medium or high amounts. In an essential early research of this “threat effect,” Freeman and Medoff (1981) examined the partnership between union thickness and nonunion wages and payment in production. They discovered that union thickness had no relationship with greater nonunion pay (the partnership had been good yet not statistically significant). Read More