Economists have long suggested that labor unions suffer a free rider problem. The argument is that, since union-set wages are available to all workers covered by unions irrespective of their union status, and union membership entails costs, workers will only join if they are coerced or are...

Using harmonized data for the years 1995–2001 from the European Community Household Panel, the authors analyze gender pay gaps by sector across the wage distribution in eleven countries. In estimations that control for the effects of individual characteristics at different points of the...