Bargaining Power and Wage-Employment Contracts in a Unionized Industry.

Input and output data are used in conjunction with negotiated.wages and employment to estimate a fully specified bargaining model between a labor union (the International Woodworkers of America) and representatives from the British Columbia wood products industry. Bargaining powers are modeled as functions of exogenous variables believed.to have influenced the parties' relative strike costs. The estimated bargaining powers are plotted over time and compared to the proportion of rents captured by each party. Parameters of the union utility function and the firms' technology are also estimated and hypothesis tests are conducted on various aspects of the model. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.