Unions, Work-Related Training, and Wages: Evidence for British Men

TLDR

Previous research has mixed findings on union effects, with some results confirmed and others novel. The study examines how union coverage influences work‑related training and the subsequent impact on wages and wage growth among full‑time British men. The authors analyze 1991–96 British Household Panel Survey data to assess the relationship between union coverage, training uptake, and wage outcomes. Union‑covered men were more likely to receive training and, when trained, earned higher wage growth, indicating that unions may enhance training returns rather than dampen incentives.

Abstract

Using data for the years 1991–96 from the British Household Panel Survey, the authors investigate how union coverage affected work-related training and how the union-training link affected wages and wage growth for a sample of full-time men. Relative to non-covered workers, union-covered workers were more likely to receive training and also received more days of training. Among workers who received training, those with union coverage enjoyed greater returns to training and higher wage growth than did those without. While some of these results have been found in previous studies, others are new. The wage results, in particular, suggest a need for rethinking the conventional view that union wage formation in Britain reduces the incentives to acquire work-related training.