The authors conjecture that previous studies have tended to overestimate the productivity of union firms relative to nonunion firms due to inadequate controls for output quality and input usage—important omissions if the higher cost of unionized labor leads to less labor-intensive...

Neither the issue of how local and aggregate labor markets interact over time-nor the issue of how heterogeneity by education, race, and other factors interacts with these spatial dynamics-has previously been explored in the literature on the cyclicality of real wages. This study investigates...