@TechReport{iza:izadps:dp18065, author={Derenoncourt, Ellora and Gerard, Francois and Lagos, Lorenzo and Montialoux, Claire}, title={What Do (Thousands of) Union Do? Union-Specific Pay Premia and Inequality}, year={2025}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18065}, url={https://www.iza.org/publications/dp18065}, abstract={We study the role of union heterogeneity in shaping wages and inequality among unionized workers. Using linked employer-employee data from Brazil and job moves across multi-firm unions, we estimate over 4,800 union-specific pay premia. Unions explain 3–4% of earnings variation. While unions raise wages on average, the standard deviation in union effects is large (6-7%). Validating our approach, wages fall in markets with higher vs. lower union premia following a nationwide right-to-work law. Linking premia to detailed data on union attributes, we find that unions with strike activity, collective bargaining agreements, internal competition, and skilled leaders secure higher wages. High-premium unions compress wage gaps by education while the average union exacerbates them. Post right-to-work, however, worker support for high-premium unions falls when between-group bargaining differentials are large. Our findings show that unions are not a monolith—their structure and actions shape their wage effects and, consequently, worker support.}, keywords={wage inequality;pay premia;unions;right-to-work}, }