Abstract
This paper examines the impacts of industry output and labor (input) market structures on workers' total compensation in U.S. manufacturing. For empirical analysis, CPS May 1983 data were matched with 1982 Census of Manufacturing. Results indicate that employees in highly concentrated product markets [proxied by four-firm concentration ratio (CRR)] earn more. independent of their union membership. Second, union members in the smaller plant sizes have the most to gain and the ‘union advantage’ disappears for medium to large plants. Third, and perhaps most important, the joint effects of unionism and CRR on earnings depend on the size of the manufacturing plant. In conclusion, the paper finds support for Dowrick's (1989) conjecture, that profits-enhancing product market conditions generally tend to increase earnings.
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