The empirical literature on the impact of unions on wages has stressed two major conclusions. Firstly, unionised workers earn a wage premium when compared to comparable nonunionised workers. Secondly, the dispersion of wages within the union sector is lower than in the nonunion sector. We...

In this paper I develop a new version of the Oaxaca–Blinder decomposition whose unexplained component recovers a parameter which I refer to as the average wage gap. Under a particular conditional independence assumption, this estimand is equivalent to the average treatment effect (ATE). I also...

The empirical literature on the impact of unions on wages has stressed two major conclusions. Firstly, unionised workers earn a wage premium when compared to comparable nonunionised workers. Secondly, the dispersion of wages within the union sector is lower than in the nonunion sector. We...