ANALYSIS OF TRADE UNIONISM AND WAGE DETERMINATION IN NIGERIA

📄 Project Abstract

The purpose of this research work was to investigate the statement that workers who are unionized significantly earn higher wages than workers that are not unionized. It also assesses what factors encourage workers' unionism. Union - nonunion wage differential (wage gap) and Oaxaca-Blinder decomposition technique were employed for the analysis while also controlling for selectivity bias by applying Heckman sample selection correction method. The result showed that the mere presence of unions affects the general wage level, thus a significant difference in the wages between union workers and non-union workers. It also showed that the differences in wages within union workers is mostly attributable to their endowment effect (human capital) and the workers' area of employment. In conclusion, it becomes evident that unions helps in improving the welfare of union workers and consequently the economy. However union activities and demands may be harmful to the growth of the economy when union...