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Concentration, Unionism, and Labor Earnings: A Sample Selection Approach

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  • Belman, Dale L

Abstract

Using a simultaneous equations model of wages and union membership, the elasticity of the wage with respect to market concentration is estimated to be approximately 0.2. The estimate uses a large data set and extensive controls to measure concentration's direct effect on the wage, an indirect effect through unionization, and a feedback effect. The indirect effect represents the majority of concentration's effect. Copyright 1988 by MIT Press.

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  • Belman, Dale L, 1988. "Concentration, Unionism, and Labor Earnings: A Sample Selection Approach," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 391-397, August.
    • Handle: RePEc:tpr:restat:v:70:y:1988:i:3:p:391-97
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    Cited by:

    1. Luciano Fanti & Nicola Meccheri, 2012. "Differentiated duopoly and horizontal merger profitability under monopoly central union and convex costs," Discussion Papers 2012/134, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Luciano Fanti & Nicola Meccheri, 2016. "Non-Rigid Wages And Merger Profitability Reversal Under Convex Costs And Centralized Unionization," Bulletin of Economic Research, Wiley Blackwell, vol. 68(4), pages 383-395, October.
    3. Nicola Meccheri & Luciano Fanti, 2012. "Managerial Delegation Schemes in a Duopoly with Endogenous Production Costs: A Comparison of Sales and Relative Profit Delegation under Centralised Unionisation," Working Paper series 44_12, Rimini Centre for Economic Analysis.
    4. Richard I. D. Harris, 1990. "Bargaining Levels and Relative Earnings in Northern Ireland in 1987," British Journal of Industrial Relations, London School of Economics, vol. 28(3), pages 397-409, November.
    5. Nannan Lundin & Lihong Yun, 2009. "International Trade and Inter‐Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer–Employee Data," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 87-102, February.
    6. Kevin Duncan & Peter Philips & Mark Prus, 2014. "Prevailing Wage Regulations and School Construction Costs: Cumulative Evidence from British Columbia," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(4), pages 593-616, October.
    7. George J. Borjas & Valerie A. Ramey, 1993. "Foreign Competition, Market Power and Wage Inequality: Theory and Evidence," NBER Working Papers 4556, National Bureau of Economic Research, Inc.
    8. Bartholomew Armah & James Peoples, 1997. "Foreign Corporate Acquisition Activity Domestic Union Status in the U.S," International Economic Journal, Taylor & Francis Journals, vol. 11(3), pages 103-115.

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