Gender Pay Disparities in Public Organizations: The Equalizing Externality of Union Membership

Abstract

Despite laws such as the Equal Pay Act of 1963 and the Civil Rights Act of 1964, which were intended to address equal pay and prohibit discrimination in the workplace based on sex, the gender pay gap permeates public sector employment. Unions have long represented worker rights but are more often associated with improving salaries and working conditions. This study draws on the literature explaining how workplace characteristics relate to gender pay disparities to examine the impact of union membership on the gender pay gap in public sector organizations. Empirical analysis of responses from public procurement officers in the United States reveals that union membership is associated with an increase of 6% in wages for females and a gender pay gap reduction of 3%. Study findings demonstrate that union membership presents positive externalities that go beyond negotiated salary and benefits terms in collective bargaining agreements.