This paper specifies a vertically differentiated products model for a product with a discrete/continuous choice. The model is easily estimated with the relatively limited data used in classical demand equation estimation, supplemented by readily available market characteristics data. The model,...

Do unions really impede manufacturers? output flexibility? If so, in what ways? The authors propose a methodology for quantifying George Stigler's concept of output flexibility and for decomposing the effects of unionization on average cost differences between union and non-union plants. Using a...

"While many believe the growth in outsourcing contributed to the decline in U.S. unionization up to the 1990s, this argument has never been investigated systematically. In this article, we analyze the effect of outsourcing on unionization between 1973 and 1993. Instrumental variables estimation...