Trade Unions, Market Concentration and Income Distribution in United States Manufacturing Industry
AbstractThe 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 InfoTo 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 InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 255.
Length: 19 pages
Date of creation: 1984
Date of revision:
Other versions of this item:
- Henley, Andrew, 1987. "Trades unions, market concentration and income distribution in United States manufacturing industry," International Journal of Industrial Organization, Elsevier, vol. 5(2), pages 193-210.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Andrew T. Young & Hernando Zuleta, 2013. "Golden Rules for Wages," DOCUMENTOS CEDE 011887, UNIVERSIDAD DE LOS ANDES-CEDE.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.