Union rent appropriation and ex post analysis

A data set of 106Fortune 500 firms is used to investigate the extent of union rent appropriation in 1977. The analysis identifies the existence of an appropriable asset with greater value in use than exchange as a necessary condition for union rent appropriation. The empirical analysis utilizes a new source of unionization data and explicitly addresses the problems associated with ex post analysis. The results suggest capital- and firm-specific efficiency are major sources for union rent appropriation. The authors thank Barry Hirsch for providing data used in this study and also thank Jon Nelson, David Macpherson, Mark Roberts, Chella Courington, seminar participants at The Pennsylvania State University, and an anonymous referee for helpful comments on an earlier draft of the paper. Machine readable copies of the unionization data and an appendix describing the programs used to generate the results are available from Ted W. Chiles at the Department of Economics, School of Business, Auburn University at Montgomery, 7300 University Drive, Montgomery, Alabama, 36117–3596.