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Elin Svarstad

Do unions care about low-paid workers? Evidence from Norway

Industrial Relations |  2023
One of the core objectives of unions is to raise the wages of the lowest paid. Utilizing a panel of individual-matched employee–employer data covering the Norwegian private sector in the period 2000–2014, I investigate how workplace union density is related to individual low-pay risk. By exploiting changes in tax deductions for union members in Norway as a source of exogenous variation, a negative effect of increased union density on low-pay risk is identified within jobs. The results further suggest that the effect of local bargaining power on individual low-pay probability is larger among immigrants than among natives.
Svarstad, Elin. 2023. Do Unions Care About Low-paid Workers? Evidence From Norway. Industrial Relations: A Journal of Economy and Society 00 (0): 125.