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Union Wage Differentials, Product Market Influences And The Division Of Rents

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Author Info

  • STEWART, M.B.

Abstract

This paper examines the extent to which product market conditions limit the ability of trade unions to establish wage differentials over nonunion pay. The mean union pay differential is estimated to be of the order of 8 percent to 10 percent in establishments with some degree of product market power, but zero in establishments facing competitive product market conditions. When competitive conditions are faced, a preentry closed shop and high union coverage of the industry are both required. It is estimated that only 5 percent of the establishments in which there are significant differentials over nonunion pay face generally competitive product market conditions. Copyright 1990 by Royal Economic Society.

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Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 323.

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Length: 44 pages
Date of creation: 1989
Date of revision:
Handle: RePEc:wrk:warwec:323

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Keywords: rent ; wages ; unionization ; industry;

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