Article Abstract:
Following Brown and Medoff (1978), a number of studies have investigated the effect of unionization on labor productivity using a log-linear, Cobb-Douglas model of technology. To derive this model, a first-order Taylor-series approximation to the intrinsically nonlinear unionization variable is made; the resulting linear equation is estimated with generalized least-squares (GLS) techniques. We demonstrate that this approximation introduces a bias that necessarily results in an overstatement of the absolute value of the exact union productivity effect. We illustrate the magnitude of this bias by comparing GLS estimates of the linear Brown-Medoff model with GLS estimates of the exact, nonlinear relationship, using aggregate time-series data from the private domestic sector of the U.S. economy. (Reprinted by permission of the publisher.)
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Article Abstract:
This study examines the effect of unions on labor's share of income. Because economic conditions within each industry are important in addressing this issue, this analysis incorporates a more disaggregated approach than has been previously used. Cross-sectional data for the 1950s - a period of more stable unionization - permit an examination of the long-run effect of wage increases on labor's share. The empirical analysis suggests that higher labor prices have no long-run impact on labor's share in manufacturing. (Reprinted by permission of the publisher.)
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Article Abstract:
The effect of residence laws and local and state-wide unionization on the total compensation and employment of municipal fire fighters is analyzed. Three models to explain the effects of residence requirements, together with empirical results using data from 560 municipalities, are examined. Empirical tests support the view that residence laws affect compensation by altering the bargaining environment, and the standard view that residence requirements restrict labor supply is contradicted.
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