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Wage and Employment Determination in a Unionized Industry: The IWA and the British Columbia Wood Products Industry

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  • Martinello, Felice

Abstract

Two non-nested models of union wage and employment determination are estimated using data on the International Woodworkers of America and the British Columbia wood products industry. One model predicts wage and employment outcomes on the labor-demand function, while the other predicts efficient outcomes on the contract curve. The models provide empirical estimates of the union's preferences, the production technology, and the comparative statics of the models. An attempt is made to choose the true model for this industry. Unfortunately, non-nested hypothesis tests and other criteria for model discrimination cannot reject one model in favor of the other. Copyright 1989 by University of Chicago Press.

Suggested Citation

  • Martinello, Felice, 1989. "Wage and Employment Determination in a Unionized Industry: The IWA and the British Columbia Wood Products Industry," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 303-330, July.
    • Handle: RePEc:ucp:jlabec:v:7:y:1989:i:3:p:303-30
    DOI: 10.1086/298210
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    Cited by:

    1. David A. Green, 2015. "Chasing after good jobs. Do they exist and does it matter if they do?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(4), pages 1215-1265, November.
    2. David E. Davis & Wesley W. Wilson, 2003. "Wages in Rail Markets: Deregulation, Mergers, and Changing Networks Characteristics," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 865-885, April.
    3. Andrews, Martyn & Harrison, Alan, 1998. "Testing for Efficient Contracts in Unionized Labour Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 50(3), pages 171-200, July.
    4. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
    5. repec:pri:indrel:dsp01cc08hf62w is not listed on IDEAS
    6. Kaiser, Ulrich & Pohlmeier, Winfried, 2000. "Efficient Bargaining and the Skill-Structure of Wages and Employment," CoFE Discussion Papers 00/24, University of Konstanz, Center of Finance and Econometrics (CoFE).
    7. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.
    8. Kevin E. Henrickson & Wesley W. Wilson, 2008. "Compensation, Unionization, and Deregulation in the Motor Carrier Industry," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 153-177, February.
    9. Paul Heidhues, 2000. "Employers’ Associations, Industry-wide Unions, and Competition," CIG Working Papers FS IV 00-11, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

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