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Corporate mergers and union wage premiums


Corporate mergers possibly enhance the labor negotiation advantage of employers. This study investigates the association between wage levels and merger activity to test the employer bargaining strength hypothesis. The results indicate significantly lower union wages as a consequence of merging. Merger activity, however, does not influence wage levels of non-union workers. These findings are supportive of the employer bargaining strength hypothesis.

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Peoples, J., Hekmat, A. & Moini, A.H. Corporate mergers and union wage premiums. J Econ Finan 17, 65–75 (1993).

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  • Wage Rate
  • Union Member
  • Wage Level
  • Federal Trade Commission
  • Wage Equation