This paper offers empirical evidence on the impact of trade unions on wage inequality in Mexico. The results indicate that unions were a strongly equalizing force affecting the dispersion of wages in 1984, but were only half as effective at reducing wage inequality in 1996. Not only did the unionized percentage of the labor force fall considerably over the period, unions also lost some of their ability to reduce wage dispersion among the workers they continued to represent. Had unions maintained in 1996 the same structural power they possessed in 1984, the rise in wage inequality in the formal sector of the labor market between those years would have been reduced by roughly 11%.
Abstract
The arguments offered by Jaswal & Akhtar to counter the social motivation theory (SMT) do not appear to be directly related to the SMT tenets and predictions, seem to not be empirically testable, and are inconsistent with empirical evidence. To evaluate the merits and shortcomings of the SMT and identify scientifically testable alternatives, advances are needed on the conceptualization and operationalization of social motivation across diagnostic boundaries.
Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence