Wage Share, Concentration and Unionism
Whilst a considerable amount of empirical work has been done on the relationship between wage levels, the degree of industrial concentration and unionism very little has been done on wage share. This is a rather surprising state of affairs given that a positive relationship between wage levels and both concentration and unionism need not imply that the functional distribution of income between labour and capital is affected by either variable. Indeed such observations are quite consistent with the view that greater concentration implies a lower share of value-added going to workers and that this outcome cannot easily be averted by union action. Whether or not such a view is tenable requires a direct examination of wage shares and provides the motivation for this paper.
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