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The World Bank Economic Review 2004 18(2):237-252; doi:10.1093/wber/lhh040
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THE WORLD BANK ECONOMIC REVIEW, VOL. 18, NO. 2,
© The International Bank for Reconstruction and Development / THE WORLD BANK 2004; all rights reserved.

Asymmetries in the Union Wage Premium in Ghana

Niels-Hugo Blunch and Dorte Verner

Niels-Hugo Blunch is a consultant in the Social Protection Unit of the Human Development Network at the World Bank and a Ph.D. candidate at The George Washington University; his e-mail address is nblunch{at}worldbank.org. Dorte Verner is a senior country economist in the Social Development Family of the Latin America and Caribbean Region at the World Bank; her e-mail address is dverner{at}worldbank.org.

Abstract

There is little evidence on the size of the union wage premium in developing economies. The article uses a matched employer-employee data set for Ghana and adopts a quantile regression approach that allows the effects of unionization to vary across the conditional wage distribution. It is shown that if there are intrafirm differences in unionization, there does appear to be a premium among poorer paid workers in the formal sector. Although this cannot be given a causal interpretation, it suggests important issues about how unions may affect one part of the labor market.


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