CEU eTD Collection (2022); Gutzianas, Ioannis: Revisiting The Union - Non-Union Wage Differential In Hungary

CEU Electronic Theses and Dissertations, 2022
Author Gutzianas, Ioannis
Title Revisiting The Union - Non-Union Wage Differential In Hungary
Summary This thesis deals with the estimation of the collective bargaining wage premium in Hungary. As such the study concentrates on what is referred to as the monopoly face of trade unions but tries to relate this to a wider understanding of how unions work. Previous research has shown a small and declining wage premium; thus, a continuation of this trend could pose serious questions about the legitimacy of Hungarian unions. This possibility also has wider implications given the interconnectedness of the faces of unions, meaning a small wage premium could restrict the possibilities of these organizations in the political arena as well. Utilizing a causal inference framework, the effect is estimated through both linear regression and matching using an employee-employer linked dataset. The initially observed raw wage gap of 27.3% decreases to between 1.5% and 2.2% after the estimation procedure, which fits in with the previously observed declining trend. Furthermore, these estimates likely suffer from an upwards bias due to the presence of unobservables, which means that the real effect is likely even lower.
Supervisor Rudas, Tamás
Department Political Science MA
Full texthttps://www.etd.ceu.edu/2022/gutzianas_ioannis.pdf

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