The Determinants of Bargaining Structure in U.S. Manufacturing Industries

Abstract

This study uses BLS data on individual collective bargaining agreements and industry data from several sources to estimate the determinants of bargaining structure in the manufacturing sector. Probit analysis is used to estimate, first, the probability that a given agreement is multifirm rather than single-firm in coverage and, second, the probability that a single-firm agreement in a multiplant firm is less than firmwide in coverage. Industry concentration and plant size are found to be strongly associated with single-firm as opposed to multifirm agreements, other things equal; among multiplant firms with single-firm agreements, however, concentration and plant size strongly increase the probability of firmwide agreements. In addition, union rivalry tends to lead to decentralized bargaining units and labor intensity of production to centralized units.

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