Summary and Conclusions
The empirical data are compatible with the hypothesis that employers respond to union wage premiums by raising the educational component of hiring standards. This behavioral mechanism by which rents are liquidated appears to be bringing about a significant shift in the quality location of American workers. More education increasingly represents preparation for a union job. Normative considerations aside, the implications of the process for the distribution of income and for the allocation of educational resources would seem to warrant serious consideration.
KeywordsCollective Bargaining Wage Premium Relative Wage Union Wage National Longitudinal Survey
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