X i D i )
8 6 4 2 0-2 -4 1987 1988 1990 1992 1994 1996 1998 2000 2002 year
12 8 4 0-4 -8 1987 1988 1990 1992 1994 1996 1998 2000 2002 year
45 40 35 30 25 20 15 1987 19 90 1994 1998 2002 year
ln W X
30 25 20 15 10 5 0-5 1987 1988 1990 1992 1994 1996 1998 2000 2002 year
18 16 14 12 10 8 6 1987 1988 1990 1992 1994 1996 1998 2000 2002 year
8 6 4 2 1987 1988 1990 1992 1994 1996 1998 2000 2002 year
45 40 30 20 10 1987 1988 1990 1992 1994 1996 1998 2000 2002 yea r
35 nu98 u98 nu02 u02 30 25 % 20 15 10 5 0 1 4 7 15 30 td
abstract This paper attempts to verify that the economic gap between the workers in (large) firms with unions and those in (small and medium size) firms with no unions has recently been widened rapidly. A comparison of the wages of the workers belonging to the business establishments with and without trade union shows that the union premium has increased very sharply since 1997, after a relatively long periods with little changes. Also found is that union sector has witnessed a sharper decline in the share of the new entrants among workers as well as a faster increase of the average tenure of workers. These all indicate that the trade unions have forced a market equilibrium to move farther away from the competitive equilibrium in recent years. Key Words: Labor Union, Wage Difference, Insider Employment Protection