Product selection and costs in a partially unionized industry

Article Abstract:

This paper examines differences in costs among union and nonunion firms operating in the multiple and competitive lumber markets; develops a model of output and product selection decisions; and then estimates the cost function implied by the model for a sample of sawmills that produce green and dry lumber. Overall, the average variable costs for the green technology are about 67 percent higher for union mills and, for the dry technology, costs are about 30 percent higher. However, differences in minimum average variable costs are negligible in the dry market but are significant in the green market. The results suggest that some union mills may be able to coexist with nonunion mills in a competitive industry by specializing in market niches determined by comparative cost advantages. (Reprinted by permission of the publisher.)

Sawmills, Sawmills and planing mills, general, Labor organizations, Labor Unions and Similar Labor Organizations, Sawmills and Planing Mills, Sawmill Products, Lumber, Unions-Agriculture, Labor relations, Lumber industry, Agricultural labor unions

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Recent trends in the union wage premium

Article Abstract:

Estimates of union-nonunion wage differentials are updated by examining a wide variety of subgroups in the general population. Variations in union wage premiums are tracked over a 15-year period, allowing inter-temporal comparisons that are not usually available. One important finding is that union wage premiums have been generally rising since 1972-1973. It also appears that females and nonwhites no longer gain the huge payoffs from unionism that evidence has suggested. The impact of race and education on union wage premiums is weighed, and there is an examination of how levels of education, association with blue-collar occupations, and employment in specific industries affect union premiums. (Reprinted by permission of the publisher.)

Compensation and benefits, Wages, Wages and salaries, Nonunion employees

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