Title: The Effect of Unions on Wage Distribution and Inequality: how skill-enhancing unions influence wage distribution

Abstract: To obtain the unconditioned effect of unions on wage distributions measured by the variance and three wage quantile ratios, the Oaxaca-Blinder decomposition combined with recentered influence function regressions is applied to logged hourly wages in and out of construction constructed from the Current Population Survey for the periods 1989-1992 and 2014-2017. Results confirm extant literature that deunionization has a polarizing effect on the overall wage distribution. However, in construction, deunionization over this period has equalized the wage distribution within this industry. This anomalous result is attributed to the unique characteristic of collective bargaining in construction which finances the accumulation and retention of human capital within the union sector of construction.

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