This issue brief looks at the most recent national data available to examine the impact that being in or represented by a union has on the wages and benefits of women in the paid workforce. Even after controlling for factors such as age, race, industry, educational attainment and state of residence, the data show a substantial boost in pay and benefits for female workers in unions relative to their non-union counterparts. The effect is particularly strong for women with lower levels of formal education

John Schmitt

Nicole Woo

English

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                  Issue Brief December 2013     Center for Economic and Policy Research 1611 Connecticut Ave. NW Suite 400 Washington, DC 20009   tel: 202-293-5380 fax: 202-588-1356 www.cepr.net    John Schmitt is a Senior Economist at the Center for Economic and Policy Research, in Washington D.C. Nicole Woo is the Director of Domestic Policy at CEPR. Women Workers and Unions  By John Schmitt and Nicole Woo*   This issue brief looks at the most recent national data available1 to examine the impact that being in or represented by a union has on the wages and benefits of women in the paid workforce. Even after controlling for factors such as age, race, industry, educational attainment and state of residence, the data show a substantial boost in pay and benefits for female workers in unions relative to their non-union counterparts. The effect is particularly strong for women with lower levels of formal education.  Women are a large and growing portion of the union workforce. In 19832, they accounted for 35.3 percent of all workers who were members of or represented by a union, compared to 45.9 percent in 2012. If current trends continue, women are on track to become a majority of the union workforce in 2023. (See Figure 1.)  FIGURE 1 Women as share of total union workforce, 1983-2012, with projections through 2025 Source: Authors’ analysis of Current Population Survey Outgoing Rotation Group 2023 304050601985 1990 1995 2000 2005 2010 2015 2020 2025Percent of all union employees   Women Workers and Unions 2  Despite this rise in their share of the union workforce, female workers continue to be unionized at lower rates than their male counterparts are, although the gap has shrunk significantly. Over the past three decades, the portion of all female workers in or covered by unions fell sharply, along with that of the entire workforce. In 1983, 18.0 percent of women were unionized, while in 2012, only 11.8 percent were unionized – a fall of just over one-third. However, the drop in unionization for men during the same period was much steeper: from 27.7 percent in 1983 to 13.1 percent in 2012 – a decrease of more than one-half. (See Figure 2.)  FIGURE 2 Unionization rate, women and men, 1983-2012  Source: Authors’ analysis of Current Population Survey Outgoing Rotation Group  On average, unionization raises women’s wages by 12.9 percent – or about $2.50 per hour – compared to non-union female workers with similar characteristics. (See Tables 1 and 2.) Both tables analyze data for all women in the workforce, but Table 1 may overstate the effects of unionization because union workers may be more likely to have characteristics that are associated with higher wages and benefits, such as age, race, state of residence, industry and educational attainment. Table 2 statistically controls for such factors, which reduces the size of the union advantage – but the effects on pay and benefits still remain large.   TABLE 1 Wages, Health, and Retirement Coverage for Women Workers, 2008-2012  Unionization  Median hourly wage  Health-insurance   Retirement plan  rate  (2012$)  (percent)  (percent)  (percent)  Union Non-union  Union Non-union  Union Non-union              12.5  21.06 14.98  74.0 50.1  75.3 42.7Notes: CEPR analysis of CEPR extract of the Current Population Survey (CPS) Outgoing Rotation Group and March CPS. Wage data exclude imputed values. Union refers to union membership or union coverage. Health insurance refers to participation in an employer- or union-sponsored plan where the employer pays some or all of the premium. Retirement plan refers to participation in an employer-sponsored plan, with or without employer contribution. Health and pension coverage refer to 2007-2011; wages refer to 2008-2012.     Women Men 0510152025301985 1990 1995 2000 2005 2010Percent of employees   Women Workers and Unions 3  TABLE 2 Regression-Adjusted Union Wage, Health, and Retirement Premiums for Women Workers, 2008-2012    Hourly wage  Health-insurance coverage  Retirement plan  Unionization  Union  Union Coverage  Union Coverage  rate  premium  premium increase  premium increase  (percent)  (percent)  (p.p.) (percent)  (p.p.) (percent)            12.52  12.9  18.4 36.8  22.8 53.4 Notes: All regressions include controls for age, education, gender, state, and two-digit industry. Union wage premiums in percent are converted from log points; all are statistically significant at, at least, the one-percent level. Union-health insurance and pension coverage figures are the percentage-point (p.p.) increases associated with union coverage or membership; all estimates are significant at the one-percent level. Coverage increases in percent terms are from the current coverage rates for non-union workers. Health and pension coverage refer to 2007-2011; wages refer to 2008-2012.  Being in or represented by a union compared well to completing college in terms of wages, especially once tuition costs are factored in. All else equal, being in a union raises a woman's pay as much as a full year of college does. For the average female worker, a four-year college degree boosts wages by over half (51.9 percent) relative to a similar woman who has only a high school degree. In comparison, unionization raises a woman’s pay by 14.7 percent – over one-quarter of the effect of a college degree. (See Figure 3.)   FIGURE 3 Union wage advantage for women, by education, 2008-12 Source: CEPR analysis of CPS data.  The union impact on the probability that a female worker has health insurance or a retirement plan through her employer was even larger than the impact on wages. At every education level, unionized women are more likely to have employee benefits than their non-union counterparts with similar characteristics. In fact, for a women worker with a high school degree, being in or represented by a union raises her likelihood of having health insurance or a retirement plan by more than earning a four-year college degree would.  For health insurance, unionized female workers are over one-third (36.8 percent) more likely to have employer-provided coverage than their non-union counterparts. This is a larger effect than that of finishing a four-year college degree, which is associated with a 29.3 percent increase in the probability of having health insurance. The benefit is even more pronounced for women workers with less formal education. For example, for a woman without a high school diploma, unionization 9.4 14.7 14.5 13.0 9.6 51.9 0102030405060Less than HS High School Some College College Advanced College OnlyUnion Advantage EducationAdvantagePercent   Women Workers and Unions 4  doubles (104 percent increase) her chances of having employer-provided health insurance. (See Figure 4.)  FIGURE 4 Union health-insurance advantage for women, by education, 2008-12 Source: CEPR analysis of CPS data.  The union advantage is largest when looking at employer-provided retirement plans. Women in or represented by unions are 53.4 percent more likely to have pension coverage than those not in unions, which is also larger than the corresponding effect of a four-year college degree (43.6 percent). Similarly, the union effect is much larger for female workers with less formal education. Unionization raises the likelihood of having an employer-provided retirement plan by over three-quarters (78.9 percent) for women with less than a high school diploma. For female workers who completed high school or have some college education, being in or covered by a union increases their chances of having pension coverage by 60.4 and 54.9 percent, respectively. (See Figure 5.)  FIGURE 5 Union retirement-plan advantage for women, by education, 2008-12 Source: CEPR analysis of CPS data.                                                            1  For details about data sources and methodology, please see Schmitt, John. 2008. “Unions and Upward Mobility for Women Workers.” Washington, DC: Center for Economic and Policy Research. Available at http://www.cepr.net/index.php/publications/reports/unions-and-upward-mobility-for-women-workers. 2  1983 is the first year that the Current Population Survey includes full year data on unionization rates. 104.0 39.1 38.0 26.4 26.0 29.3 020406080100120Less than HS High School Some College College Advanced College OnlyUnion Advantage EducationAdvantagePercent 78.9 60.4 54.9 39.6 32.6 43.6 020406080100120Less than HS High School Some College College Advanced College OnlyUnion Advantage EducationAdvantagePercent 

Women Workers and Unions

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Women Workers and Unions

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