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Concentration, Unionism, and Labor Earnings: A Sample Selection Approach

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Author Info
Belman, Dale L
Abstract

Using a simultaneous equations model of wages and union membership, the elasticity of the wage with respect to market concentration is estimated to be approximately 0.2. The estimate uses a large data set and extensive controls to measure concentration's direct effect on the wage, an indirect effect through unionization, and a feedback effect. The indirect effect represents the majority of concentration's effect. Copyright 1988 by MIT Press.

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Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 70 (1988)
Issue (Month): 3 (August)
Pages: 391-97
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Handle: RePEc:tpr:restat:v:70:y:1988:i:3:p:391-97

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  1. George J. Borjas & Valerie A. Ramey, 1993. "Foreign Competition, Market Power and Wage Inequality: Theory and Evidence," NBER Working Papers 4556, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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