The Structural Determinants of Union Bargaining Power

Lawrence Mishel

71 citations0/0 files storedIndustrial and Labor Relations Review

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Labor Movements and Unions Labor market dynamics and wage inequality Merger and Competition Analysis

Abstract

This paper investigates the structural determinants of variation in union power across manufacturing industries. Using a pooled sample of unionized establishments from the Expenditure on Employee Compensation Surveys of 1968–72, the author estimates wage equations augmented with measures of product market structure, bargaining structure, and the size distribution of unions. The results suggest that union wage gains are greatest where discretionary pricing power enhances employers' ability to pay and where unions achieve high coverage, practice centralized bargaining, and avoid union fragmentation. On the other hand, centralized bargaining provides no advantage in competitive industries.

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References

1976Industrial Concentration: The New Learning 1965Unionism and Relative Wages in the United States.1981The Effect of Unionism on Fringe Benefits 1982Bargaining: Power, Tactics, and Outcomes.1979New Estimates of Private Sector Unionism in the United States 1969Trade Union Power, Threat Effects and the Extent of Organization

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