Union Wage Premium

US union workers earn roughly 10 to 15 percent more on average than comparable non-union workers, with far better pensions and benefits.

Overview

The premium is largest for workers without college degrees, exactly where union density collapsed: private-sector membership fell from around a quarter of workers in the 1970s to about six percent today, while public-sector unionization held near a third. Union contracts also compress internal spreads and raise benefits, defined-benefit pensions especially. Spillovers exist, non-union employers matching to stay unorganized, so measured premiums understate effect on markets. The 2023 auto strike cycle and new organizing at major retailers revived the topic. Figures are approximate research consensus.