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


  • Perloff, Jeffrey M
  • Sickles, Robin C


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.

Suggested Citation

  • Perloff, Jeffrey M & Sickles, Robin C, 1987. "Union Wage, Hours, and Earnings Differentials in the Construction Industry," Journal of Labor Economics, University of Chicago Press, vol. 5(2), pages 174-210, April.
  • Handle: RePEc:ucp:jlabec:v:5:y:1987:i:2:p:174-210

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    References listed on IDEAS

    1. Masanori Hashimoto & Ben T. Yu, 1980. "Specific Capital, Employmemt Contracts, and Wage Rigidity," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 536-549, Autumn.
    2. Hall, Robert E & Lazear, Edward P, 1984. "The Excess Sensitivity of Layoffs and Quits to Demand," Journal of Labor Economics, University of Chicago Press, vol. 2(2), pages 233-257, April.
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    6. Fama, Eugene F, et al, 1969. "The Adjustment of Stock Prices to New Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 1-21, February.
    7. Christopher J. Flinn & James J. Heckman, 1982. "Models for the Analysis of Labor Force Dynamics," NBER Working Papers 0857, National Bureau of Economic Research, Inc.
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    9. Jarrell, Gregg A, 1981. "The Economic Effects of Federal Regulation of the Market for New Security Issues," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 613-675, December.
    10. John G. Cragg & Russell S. Uhler, 1970. "The Demand for Automobiles," Canadian Journal of Economics, Canadian Economics Association, vol. 3(3), pages 386-406, August.
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    12. Michael G. Abbott, 1982. "Specification Tests of Quarterly Econometric Models of Aggregate Strike Frequency in Canada," Working Papers 527, Princeton University, Department of Economics, Industrial Relations Section..
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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. Johansson, Robert Charles, 1997. "Wage structure in the supermarket industry 1984-1993," Faculty Theses and Dissertations 246441, University of Minnesota, Department of Applied Economics.
    3. D. Kate Rubin & Jeffrey M. Perloff, 1993. "Who Works for Piece Rates and Why," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 1036-1043.
    4. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241.
    5. Robert C. Johansson & Jay S. Coggins, 2002. "Union Density Effects in the Supermarket Industry," Journal of Labor Research, Transaction Publishers, vol. 23(4), pages 673-684, October.
    6. 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.
    7. Cihan Bilginsoy, 2013. "Union Wage Gap in the U.S. Construction Sector: 1983–2007," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 677-701, July.

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