Abstract
This paper outlines a model that tests for the presence of spillover effects of union coverage across industry boundaries on wages and union coverage in vertically related industries. There is some evidence of spillover effects from buying industries to the wages of nonunion workers and of such effects on the degree of union coverage from both buying and supplying industries.
Similar content being viewed by others
References
Ashenfelter, Orley and George E. Johnson, “Unionism, Relative Wages, and Labor Quality in U.S. Manufacturing Industries,”International Economic Review 13 (October 1972): 488–508.
Coughlin, Peter E. and Albert J. Walderhaug, “New Structures and Equipment by Using Industries, 1972: Detailed Estimates and Methodology,” Bureau of Economic Analysis Staff paper 035, Bureau of Economic Analysis, U.S. Department of Commerce, September 1980.
Crane, Jane-Ring F., “Employment and Employee Compensation in the 1972 Input-Output Study,” Bureau of Economic Analysis Staff Paper 038, Bureau of Economic Analysis, U.S. Department of Commerce, October 1981.
Freeman, Richard B. and James L. Medoff, “New Estimates of Private Sector Unionism in the United States,”Industrial and Labor Relations Review 32 (January 1979): 143–74.
Kelejian, Harry H., “Two-Stage Least Squares and Econometric Systems Linear in Parameters but Nonlinear in the Endogenous Variables,”Journal of the American Statistical Association 66 (June 1971): 373–74.
Levinson, Harold M., “Unionism, Concentration, and Wage Changes: Toward a Unified Theory,”Industrial and Labor Relations Review 20 (January 1967): 198–205.
Martin, Stephen, “Advertising, Concentration, and Profitability: The Simultaneity Problem,”Bell Journal of Economics 10 (Autumn 1979): 639–47.
_____. “Vertical Relationships and Industrial Performance,”Quarterly Review of Economics and Business 23 (Spring 1983): 6–18.
Martin, Stephen and Cynthia Rence, “Spillovers, Wages, and Union Coverage,” Econometrics Workshop Paper No. 8210, Michigan State University, May 1983.
Parsley, C. J., “Labor Union Effects on Wage Gains: A Survey of Recent Literature,”Journal of Economic Literature 18 (March 1980): 1–31.
Ritz, Philip M., “Definitions and Conventions of the 1972 Input-Output Study,” Bureau of Economic Analysis Staff Paper 80-034, Bureau of Economic Analysis, U.S. Department of Commerce, July 1980.
Rosen, Sherwin, “Trade Union Power, Threat Effects and the Extent of Organization,”Review of Economic Studies 36 (April 1969): 185–96.
Scherer, F. M.Industrial Market Structure and Economic Performance. 2d ed. Chicago: Rand McNally, 1980.
Strickland, Allyn D. and Leonard W. Weiss, “Advertising, Concentration, and Price-Cost Margins.”Journal of Political Economy 84 (October 1976): 1109–21.
Weiss, Leonard W., “Concentration and Labor Earnings,”American Economic Review 56 (March 1966): 96–117.
Author information
Authors and Affiliations
Additional information
We are grateful to Dan Hamermesh and an anonymous referee for useful comments. Responsibility for errors is our own.
Rights and permissions
About this article
Cite this article
Martin, S., Rence, C. Vertical spillovers, market concentration, union coverage, and wages. Journal of Labor Research 5, 177–189 (1984). https://doi.org/10.1007/BF02685256
Issue Date:
DOI: https://doi.org/10.1007/BF02685256