https://macropaperwarehouse.com/authors/ben-m.-sand/Ben M. SandHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/the-impact-of-unions-on-nonunion-wage-setting-threats-and-bargaining/https://macropaperwarehouse.com/papers/the-impact-of-unions-on-nonunion-wage-setting-threats-and-bargaining/<p>This paper estimates the impact of unions on nonunion wage setting in the United States over the period 1980–2010, distinguishing two channels through which unions affect nonunion wages: (1) a traditional threat channel, in which nonunion firms raise wages to preempt unionization by making workers indifferent between forming a union and remaining nonunion (an &ldquo;emulation wage&rdquo;); and (2) a bargaining channel, in which nonunion workers use the availability of high-paying union jobs as part of their outside option when bargaining individually with their employer, so that a decline in union job prevalence or the union wage premium erodes nonunion bargained wages even at firms that face no direct unionization threat.</p>