Union wage effects in the presence of enterprise bargaining

Previous research on union wage effects has underestimated the potential fo r unions to raise member wages since the data used do not enable difference s across bargaining units to be properly accounted for. This study addresse s this deficiency by utilizing matched employer-employee data that permit w orkplace-specific union wage effects to be identified Results from the esti mation of wage equations indicate that, while there is only a very small in tra-workplace union wage effect, differences across workplaces are consider able. This differential, however, only exists at workplaces where there is substantial coverage by collective agreements.