Comments and Discussion.

Item request has been placed! ×
Item request cannot be made. ×
loading   Processing Request
  • Additional Information
    • Abstract:
      This article comments on a study by Robert J. Flanagan which examined the fluctuation in the union-nonunion wage differential. The research probably offers the best explanation yet of the rather puzzling fluctuation in the union-nonunion wage differential. Hence, there are several major themes which are discussed in the research. First, there is evidence of interdependence among union wage settlements, but no such spillover effects are apparent in the nonunion sector. Second, the apparent lesser sensitivity to current market conditions of manufacturing union wage rates compared to nonunion wage rates is a result of multiyear contracting in the union sector. Third, the incorporation of a wage-wage view of the inflation process sharply reduces the estimated direct effect of prices on wages. Fourth, wage-price controls or guidelines may put a floor under wage increases in some sectors at the same time that they restrain wages in others. Fifth, all the structural models of union wages underpredict the increases of 1975. Finally, there are no fixed leader-follower wage patterns in union settlements.