Trade unionism is a legislative system of organizing workers and raising voices for economic and social goods. As the process of global integration deepens the labour market become more flexible and fragmented, rendering collective organization more and more difficult. In this backdrop, the paper attempted to analyse the impact of union membership on wages in the organised manufacturing industries in India. The study uses a recent survey data on labour market in the organised manufacturing industries. The estimated wage premiums for union membership for permanent and contract workers are 56.7 per cent and 10.3 per cent respectively. Decomposing this wage gap indicates that union membership contributes majority of the wage differentials, indicating that unions able to reserve higher premium for their members. In general, it refutes the problem of free riding the benefits in the organized manufacturing industries in India.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.