The Effects of Different Types of Mergers on Union and Non-Union Wages in the United States

Abstract

Pooled individual and industry information was used to measure the wage effects of different types of mergers in 1980s. The results from this study showed that union wages in industries consisting of horizontally or vertically merged companies were not significantly higher than union wages in industries without mergers. Conversely, non-union wages were significantly higher in industries where horizontal or vertical mergers took place. These results also showed that the wages of union workers were significantly lower in industries composed of product extension or conglomerate mergers as compared to wages in industries without mergers. Furthermore, the wages of non-union workers were not influenced by product extension or conglomerate merged employers. (J31, 151)