This research is concerned with identifying the differing responses of union and nonunion wages to shocks to real output growth, inflation, and the stance of monetary policy. Aggregate measures of union and nonunion wages and salaries are used to construct a time series of the wage differential...

The study adds to the literature by providing new empirical evidence consistent with efficiency wage theory, and by providing estimates of the average cost of supervising a worker by industry. This research uses the 1996 wave of the NLSY and incorporates estimates of supervision cost computed...