The Impact of Unionization on Health Insurance Benefits

Numerous studies have highlighted the impact of unionization on fringe benefits, but the data have been qualitative in nature. That is, economists have estimated the impact of unionization on the probability that pensions and health insurance benefits are provided by employers in the first place. More recent studies concerned with the impact of unionization on fringe benefits have reexamined standard econometric methods, but they have not seriously challenged earlier findings. Only a few studies have been concerned with whether unionization raises the expenditure levels of fringe benefits. This study highlights the growing importance of including fringe benefits in estimating the impact of unionization on the union-non-union total compensation differential.