New research concludes Union membership increases wage premia of workers, particularly those less skilled
The less skilled the workers were, the greater the wage premium associated with their union membership.
Whilst tempting, it may also be considered this premia represents a rent extracted by Unionised workers.
As labour productivity declined from the beginning of this century, profits increased despite the widening gap between earnings and productivity. A plausible explanation is the increase in firm financialisation.
Regardless of the cause, the increase in capital intensity has not coincided with lower wages, quite the contrary. Whether financialisation leads to more investment and jobs or more profits is debatable – yet hardly the necessary cause of inequality.