DIRECT AND INDIRECT EFFECTS OF UNIONIZATION AND GOVERNMENT EMPLOYMENT ON FRINGE BENEFIT PROVISION

The separate influences of unionization and government employment on the provision of two major fringe benefits, pensions and health insurance, are investigated. Each influence is decomposed into a direct effect and an indirect effect through earnings. The sum of these effects often differs in size from estimates that ignore the two distinct effects. Moreover, studies that argue that both unions and governmental employees capture greater fringe benefits focus on the direct effect, yet estimates usually have not isolated this effect. © 1991 Journal of Labor Research.