Estimating public and private sectors’ union wage effects in Ghana: is there a disparity?

Abstract

Purpose – This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two sectors varies. Design/methodology/approach – The authors use data from the Ghana Living Standards Survey 6 (GLSS 6, 2012/2013) and Ghana Labour Force Survey (GLFS, 2015). In terms of estimation technique, the authors employ the Blinder–Oaxaca decomposition technique to estimate union wage effect in public and private sectors, respectively. Findings – The findings indicate that union wage effect in the public sector is positive and higher relative to that of the private sector. Practical implications – The findings imply that strict enforcement of Section 82 of Labour Act 2003 (Act 651) will curb the political influence of public sector unions over their employer (Government). Originality/value – This research paper has not been presented to any journal for publication and it is the authors’ original work.