This paper examines the effects of trade unions in Ireland on the firs
t two moments of the wage distribution. Using data from the ESRI's 198
7 Survey of Income Distribution, Poverty and Usage of State Services,
a union membership mark-up of over 20 per cent is obtained. A smaller
variance in wages is also observed for union members. Only small parts
of the differentials in the mean and variance of the wage between uni
on and non-union members are explained by differentials in worker char
acteristics. The larger unexplained components are taken to reflect, a
mong other things, the role played by structural differences in the wa
ge determining processes between the union and non-union sectors.