Wage inequality, collective bargaining, and relative employment from 1985 to 1994: Evidence from fifteen OECD countries

Using microdata from 1985 to 1994 for fifteen OECD countries, I find that g reater union coverage and membership lead to higher relative pay and lower relative employment for less-skilled men, with similar pay effects but only weak evidence of negative employment effects for less-skilled women. Great er economy-wide union coverage or membership leads to lower employment and higher relative wages for young men (with similar but weaker effects for yo ung women), and a greater propensity to attend school for both genders. Wit h few jobs for young people, education may have a low opportunity cost and may enhance one's employability.