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The Structural Determinants of Union Bargaining Power

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  • Lawrence Mishel

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.

Suggested Citation

  • Lawrence Mishel, 1986. "The Structural Determinants of Union Bargaining Power," ILR Review, Cornell University, ILR School, vol. 40(1), pages 90-104, October.
    • Handle: RePEc:sae:ilrrev:v:40:y:1986:i:1:p:90-104
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    Cited by:

    1. Klaas J. Beniers & Robert A.J. Dur, 2003. "Product Market Competition and Trade Union Structure," Tinbergen Institute Discussion Papers 03-005/1, Tinbergen Institute, revised 26 Aug 2003.
    2. Adam Levai & Riccardo Turati, 2021. "The Impact of Immigration on Workers’ Protection," LIDAM Discussion Papers IRES 2021021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2021.
    3. Minas Vlassis & Stefanos Mamakis, 2014. "Welfare Improving Cartel Formation in a Union-Oligopoly Static Framework," Working Papers 1407, University of Crete, Department of Economics.
    4. Dowrick, Steve & Spencer, Barbara J, 1994. "Union Attitudes to Labor-Saving Innovation: When Are Unions Luddites?," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 316-344, April.
    5. John Pencavel, 1997. "Regulating Collective Bargaining in Developing Countries: Lessons from Three Developed Countries," Working Papers 97025, Stanford University, Department of Economics.
    6. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-1137, December.
    7. Chongvilaivan, Aekapol & Hur, Jung & Riyanto, Yohanes E., 2013. "Labor union bargaining and firm organizational structure," Labour Economics, Elsevier, vol. 24(C), pages 116-124.
    8. Fuess Jr., Scott M., 2001. "Union Bargaining Power: A View from Japan," IZA Discussion Papers 393, Institute of Labor Economics (IZA).
    9. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
    10. Minas Vlassis & Maria Varvataki, 2014. "On the Mode of Competition as a Collusive Perspective in Unionized Oligopoly," Working Papers 1408, University of Crete, Department of Economics.
    11. Russell W. Coff, 1999. "When Competitive Advantage Doesn't Lead to Performance: The Resource-Based View and Stakeholder Bargaining Power," Organization Science, INFORMS, vol. 10(2), pages 119-133, April.

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