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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
Get average wages. Also, get the average wage for unionized and nonunionized workers. Note the resulting nonunion/union wage ratio.
How does this compare with statistics in the textbook?
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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
The average wage for the full sample is the average for the wage variable.
This is $20.72.
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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
To get the average wages for unionized workers and nonunionized workers, first create new wage variables for each type of worker and then calculate the sample average for each worker category.
The sample average will be the average wage for union workers and workers who are not in a union.
The nonunion average wage divided by the average wage for unionized workers will be the nonunion/union wage ratio.
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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
The wage variable is in column A and the union dummy variable is in column B, so the new wage variable for workers in unions is calculated as (type—or cut and paste—this command in each row of a new column)
=if(B2=1,A2,false).
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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
Similarly, the new wage variable for nonunionized workers is calculated as
=if(B2=0,A2,false).
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ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
Here are the answers with the NLSY oversamples included:
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Variable Average Minimum Maximum
Wage 20.72 3.00 100.00
UnionWage 23.18 3.00 100.00
NonunionWage 20.11 3.00 100.00
Nonunion/Union Wage Ratio 0.87
ECON 4510/5510 Unions and Collective Bargaining:
Data Assignment 5
The Ca
ell and Heavrin XXXXXXXXXXtextbook reports that in 2009 the average union wage is $23.18 and the average nonunion wage is $ XXXXXXXXXXSo the nonunion/union wage ratio is about 84 percent.
In our NLSY data with the oversamples, the nonunion/union wage ratio is 87 percent, which is somewhat higher.