Concentration,unionization and the distribution of income in Canadian Manufacturing Industry: Comment

This note comments on a recent article in this journal by Hollander. The principal points made are two. First, if Hollander's regressions are interpreted as representing the determinants of non-wage share of value-added, no evidence is provided by these regressions that monopsony power transfers income from factors in one industry to factors in another. Second, the interpretation of the regressions as representing the determinants of non-wage share of value-added is itself challenged. In so doing the role of capital intensity variables in these types of studies is clarified.