The empirical literature of the influence of unions on productivity is extended by considering the effect in an industry with heterogeneous firms. Recent theoretical papers suggest that, in such an industry, unions will tend to organize the exogenously 'more productive' firms. Thus, a spurious...

This paper tests the theory of compensating differentials by estimating the sacrifice in current earnings necessary to acquire employment leading to future wage growth. Utilizing longitudinal data, the predicted value of each individual's actual wage growth subsequent to the current period is...

We examine the effect of the market power of unions on the wage of unionized labor. Market power is measured as the percent of an industry's labor force that is unionized. Unique in this study is the simultaneous treatment of the union wage and extent of union organization as union choice...