Union rents and market structure revisited
Article Abstract:
Several recent studies give conflicting evidence on whether market power associated with industry concentration is an important source of union rents. Using a 1977 sample of 327 four-digit manufacturing industries, we re-examine the issue with a regression analysis that allows for differential union effects on price-cost margins across three levels of concentrations. Large and small firms as well as industry average price-cost margins are analyzed. The results reaffirm those of Hirsch and Connolly (1987), who conclude that the effect of unions on profits is independent of market structure, and thus market power is not an important source of union rents. We find that unionization: (1) reduces industry profits in all three concentrations groups with statistically insignificant differential effects, and (2) has a greater negative effect on the profits of large firms than it does on the profits of small firms, regardless of the concentration category. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1991
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The economic effects of faculty unions
Article Abstract:
The relationship between faculty salaries and unionism at Ph.D.-level universities is investigated. Unlike previous attempts at analyzing this topic, the model endogenizes the union-nonunion choice using appropriate techniques for analyzing limited dependent variables. These techniques allow computation of average salaries for all schools under the assumption that they are unionized and also under the assumption that they are not unionized. Subtraction of the predicted nonunion salary from the union salary provides an estimate of salary differences, which is corrected for selectivity bias. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1991
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The impact of unionization on the entry of firms: evidence from U.S. industries
Article Abstract:
Traditional models of entry-deterrence typically emphasize sunk costs or predatory pricing, but unionization might also discourage potential entrants. This paper explores this possibility through an empirical model of entry that includes unionization as an explanatory variable. We find that unionization has a statistically significant entry-deterring effect. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1992
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