The determinants of pay levels and fringe benefit provision in Britain

The ability of trade unions to raise pay levels is well established, but the contraction of the union sector in Britain calls this into question. Analysis of the 1998 Workplace Employee Relations Survey shows that there is still a union premium for some employees covered by collective bargaining and that this effect spills over to other employees in the same workplaces. Employer and workplace characteristics generally have a greater impact on pay than union bargaining. Circumstances where the union effects are strongest are identified. Some similar effects are shown for the provision of fringe benefits.