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Determinants of Belonging to a Union - Essay Example

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The rationale of this paper is to investigate the factors that determine the entry into a union. Some of these factors include age, education; marital status and place of living (city, South and Standard Metropolitan Statistical Area -SMSA), wage, work experience and race…
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Determinants of Belonging to a Union
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This study establishes that an average person who never attended college and lives outside the South and the Central City earns an average hourly rate of $7.57 has a probability of 0.61 of being unionized.
This is because the overall available jobs are not as abundant as they are within the city. It is also presumed that, the black peoples are likely to be in unions than the white counterparts. In addition, persons with low wages tend to align themselves to unions. This study intends to test all these assumptions and examine a model of the determinant factors of belonging to a union. SAMPLE This study uses a data set of 1,876 individuals. 25 % of this populace belongs to a union. The minimum and maximum age of this sample is 34 and 46 years respectively. The average age for this sample is established to be 39 years. The samples attributes include 65% married, 24% divorced and 11% never been married, 24% are graduates, 42% live in the south, 30% in the central city while 71% in an SMSA. In addition, 28% are black. It is significant to note that, the levels of education of the sample vary significantly. The average grade attained in high school and college is 13. Majority of the people forming a sample comprises of those without education to grade 18 of education. The average wage per hour in this sample is $7.57. The wage variance is significant. The average work experience of the sample is 12.8 years, which include persons who have, worked between 0.1 years to 29 years. This study examines the correlation amid variables. It is observable that, the marital status and the unions are dependent variables. This is indicated by (never married ?2 = 4.6, df= 1, P?0.05, single verses married: ?2 = 5.3, df-=1, P?0.05). On the contrary, the general anticipation that more than expected single individuals are unionized. They include divorced and those never married. On the other and, less tan anticipated married individuals do not belong to a union. Similarly, the variables living in the central city, south and in an SMSA and being unionized are dependent. This survey reveals that, less than expected populace of the South are unionized (?2 =41.96, df=1, p? 0.001); more than the anticipated populace of a central city are unionized (?2= 17.8, df=1, P?0.001) and more than the anticipated SMSA inhabitants are unionized (?2= 11.2, df=1, P?0.001). The presumed assumption of more than the anticipated black people belong to unions attestable (?2= 12.5, df=1, P?0.001). In addition, the race and being unionized are dependent of each other. The survey indicates that the correlation between age and being unionized is not significant (t=-0.52, df=1874, P?0.05). The grade attained have a highly significant correlation with being unionized (t=-3.75, df=708.47, P?0.001).This implies that, the members of the union have between grade 13 and 14. In addition, the correlation between wage and being unionized is highly significant (t=-6.65, df=1874, P?0.001). A union member earns an average of $8.68 compared to a non-unionized employee’s hourly wage rate of $7.2. The study further examines that, the correlation between the total number of years of experience and being unionized is highly significant (t=-2.32, df=1874, P?0.05). Similarly, the re is insignificant difference between experience of a non-unionized member and a unionized member. It is notable that, the average number of years of experience for a non-unionized member is 12.7 while that, of a unionized member is 13.2. The other fundamental aspect is the wage difference across the races. It is notable tat, the ...Download file to see next pagesRead More
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