Concentration, Unionism, and Labor Earnings: A Sample Selection Approach

Dale L Belman

The Review of Economics and Statistics, 1988, vol. 70, issue 3, 391-97

Abstract: Using a simultaneous equations model of wages and union membership, the elasticity of the wage with respect to market concentration is estimated to be approximately 0.2. The estimate uses a large data set and extensive controls to measure concentration's direct effect on the wage, an indirect effect through unionization, and a feedback effect. The indirect effect represents the majority of concentration's effect. Copyright 1988 by MIT Press.

Date: 1988
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