Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trade Unions, Market Concentration and Income Distribution in United States Manufacturing Industry


Author Info

  • Henley, Andrew


The question of what effect if any trade unions have on the functional distribution of income is an old one. Conventional production theory suggests that the presence of a monopoly element on the supply side of a particular labour market may well raise wages but in the long run any factor substitution away from labour would have an ambiguous effect on the factor income distribution depending on the value of the elasticity of substitution. Distribution gains would only accrue to labour under conditions of inelastic factor substitutability (see, for example, Addison & Siebert 1979). A considerable body of econometric research (surveyed in King and regan 1976) has given general credence to the view that the elasticity of substitution between capital and labour, using cross sectional analysis, is equal to one across a large array of different industries. Adoption of this "stylised" fact leads to the conclusion that a rise in the price of labour would cause such a substitution from labour to capital as to leave the functional distribution unaffected. One might therefore conclude that trades unions can have little or no effect on income distribution.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 255.

as in new window
Length: 19 pages
Date of creation: 1984
Date of revision:
Handle: RePEc:wrk:warwec:255

Contact details of provider:
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page:
More information through EDIRC

Related research


Other versions of this item:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Andrew T. Young & Hernando Zuleta, 2013. "Golden Rules for Wages," DOCUMENTOS CEDE 011887, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Amitava Dutt & Anindya Sen, 1997. "Union bargaining power, employment, and output in a model of monopolistic competition with wage bargaining," Journal of Economics, Springer, vol. 65(1), pages 1-17, February.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:255. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.