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The Direction of Wage Spillovers in Manufacturing

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  • Susan Vroman

Abstract

This study develops a model of wage behavior for both union and nonunion workers in the U.S. manufacturing sector and tests that model with separate union and nonunion wage-change series covering the period 1960 to 1978. The empirical results support the traditional view that union wage behavior influences or spills over into nonunion wage changes but not vice versa. These results are of particular interest because they contrast sharply with an earlier study by Flanagan that reported an opposite spillover effect. Flanagan's results are shown to be quite sensitive to the choice of model specification and data period.

Suggested Citation

  • Susan Vroman, 1982. "The Direction of Wage Spillovers in Manufacturing," ILR Review, Cornell University, ILR School, vol. 36(1), pages 102-112, October.
    • Handle: RePEc:sae:ilrrev:v:36:y:1982:i:1:p:102-112
    DOI: 10.1177/001979398203600107
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    Cited by:

    1. Kuhn, Peter & Gu, Wulong, 1998. "Centralization and strikes," Labour Economics, Elsevier, vol. 5(3), pages 243-265, September.
    2. Kuhn, Peter & Gu, Wulong, 1999. "Learning in Sequential Wage Negotiations: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 109-140, January.
    3. Tomohara, Akinori & Takii, Sadayuki, 2011. "Does globalization benefit developing countries? Effects of FDI on local wages," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 511-521, May.
    4. Yu Hsing, 2001. "A macroeconomic analysis of the impact of union wage increases on nonunion wages," Applied Economics Letters, Taylor & Francis Journals, vol. 8(12), pages 803-806.

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