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Union Wage, Hours, and Earnings Differentials in the Construction Industry

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  • Perloff, Jeffrey M
  • Sickles, Robin C

Abstract

Full-information maximum likelihood is used to estimate union wage, hours, and earnings markups. Construction union wage markups are positive (58.2 percent at the sample means). Since union hours markups are negative (A4.0 percent) for most demographic groups, union earnings markups (51.1 percent) are smaller than the wage markups. All exogenous variables are allowed to interact with the endogenous union dummy variable, which allows us to test whether markups vary across demographic groups, whether increased local unionization has a positive spillover effect in the nonunion sector, and whether increased local unemployment equally affects wages and hours in the two sectors. Copyright 1987 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 5 (1987)
Issue (Month): 2 (April)
Pages: 174-210

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Handle: RePEc:ucp:jlabec:v:5:y:1987:i:2:p:174-210

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Web page: http://www.journals.uchicago.edu/JOLE/

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Cited by:
  1. Daniel T. Winkler & W. Keener Hughen, 2012. "Fringe Benefits Compensation of Real Estate Agents and Brokers," International Real Estate Review, Asian Real Estate Society, vol. 15(3), pages 253-281.
  2. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241, October.
  3. Vella, F. & Verbeek, M.J.C.M., 1992. "Estimating the impact of endogenous union choice on wages using panel data (Revised version)," Discussion Paper 1992-32, Tilburg University, Center for Economic Research.
  4. Rubin, D. Kate & Perloff, Jeffrey M, 1992. "Who works for piece rates and why," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3xs4x5cd, Department of Agricultural & Resource Economics, UC Berkeley.
  5. Johansson, Robert C. & Coggins, Jay S. & Senauer, Benjamin, 1999. "Union Density Effects In The Supermarket Industry," Working Papers 14313, University of Minnesota, The Food Industry Center.

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