Two non-nested models of union wage and employment determination are estimated using data on the International Woodworkers of America and the British Columbia wood products industry. One model predicts wage and employment outcomes on the labor-demand function, while the other predicts efficient outcomes on the contract curve. The models provide empirical estimates of the union's preferences, the production technology, and the comparative statics of the models. An attempt is made to choose the true model for this industry. Unfortunately, non-nested hypothesis tests and other criteria for model discrimination cannot reject one model in favor of the other. Copyright 1989 by University of Chicago Press.
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