Abstract
This study develops a model of wage behavior for both union and nonunion workers in the U.S. manufacturing sector and tests that model with separate union and nonunion wage-change series covering the period 1960 to 1978. The empirical results support the traditional view that union wage behavior influences or spills over into nonunion wage changes but not vice versa. These results are of particular interest because they contrast sharply with an earlier study by Flanagan that reported an opposite spillover effect. Flanagan's results are shown to be quite sensitive to the choice of model specification and data period.
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