Union Wage Effects and the COVID-19 Pandemic: the Accommodation Sector in Las Vegas and Phoenix

The present study investigates union wage effects before and after the COVID-19 pandemic. The research focuses on the Accommodation sector of the hospitality industry in Las Vegas, Nevada, where there is a significant union presence, and in Phoenix, Arizona, where there is not. The study employs data from the Current Population Survey from the years 2011 to 2023. Findings suggest that union wage premiums were relatively low over the period between 2011 and 2019, when comparing unionized Las Vegas workers with non-union workers in Las Vegas. Upon introduction of workers from Phoenix into the sample to control for union threat effects, the estimated union wage premium increases significantly. Such results are consistent with a threat effect that raises wages for non-union workers in Las Vegas. The post COVID-19 period, characterized by a steep recession and rapid recovery, including a period of excess demand for labor and high inflation, appeared to be associated with a falling union wage premium.