This article tests two rival theories of the growth of union decertification: a neoclassical and an institutionalist. Both perform well when they are independently tested against the data. However, Cox nonnested hypothesis tests indicate that when these two theories are tested against each other, the institutionalist theory is superior to (i.e., variance encompasses) the neoclassical theory.
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ABSTRACTWe analyze the price pass-through effect of the minimum wage and use the results to provide insight into the competitive structure of low-wage labor markets. Using monthly price series, we find that the pass-through effect is entirely concentrated on the month that the minimum wage change goes into effect, and is much smaller than what the canonical literature has found. We then discuss why our results differ from that literature, noting the impact of series interpolation in generating most of the previous results. We then use the variation in the size of the minimum wage change to evaluate the competitive nature of low-wage labor markets. Finally, we exploit the rich variation in minimum wage policy of the last 10-15 years-including the rise of stateand city-level minimum wage changes and the increased use of indexation-to investigate how the extent of price pass-through varies by policy context. This paper contributes to the literature by clarifying our understanding of the dynamics and magnitude of the pass-through effect and enriching the discussion of how different policies may shape the effect that minimum wage hikes have on prices.
JEL Classification Codes: J3, J48, J11
This paper constructs a model of the "institutional agenda" of capitalists in a closed domestic economy. The link between this agenda (i.e., the set of institutions capitalists desire) and the actual institutions regulating the economy is established. Some characteristics of this model are consistent with the claims of radical institutionalists; however, other characteristics are not. This model also permits, for the first time in a formal model, discussion of the link between the base and the superstructure, of the role of "the last instance" in historical development, and of the claim that there exists a "monopoly capital" stage of capitalism.
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