Unions and Wage Determination: Can Monopsonist Unions Reduce Unemployment?

Ana Paula MARTINS

Abstract


Abstract. This paper extends the standard closed shop union model of wage determination by introducing endogeneity of union membership. The labor market outcome with endogenous membership may differ when unions behave monopsonisticaly relative to the case where they are "membership-takers", resulting in higher or lower wages (more or less favorable contract curve in efficient bargaining) according to the form union´s utility function and/or implicit decision process value union size. Some notes are added highlighting the role of membership fees in the membership function determination of a union that works as a nonprofit organization.

Keywords. Unions, Wage Determination Models, Union Membership, Union Bargaining, Corporatism, Monopsonist Union, (Collective Choice).

JEL. J51, J42, E24, D71, P42.


Full Text:


References


Blair, D.H., & Crawford, D.L. (1984). Labour union objectives and collective bargaining, The Quarterly Journal of Economics, 99(3), 547-566. doi. 10.2307/1885964

Booth, A.L. (1995) The Economics of the Trade Union. Cambridge University Press.

Booth, A.L. (1984) A public choice model of trade union behaviour and membership, Economic Journal, 94(376), 883-898. doi. 10.2307/2232301

Booth, A.L., & Chatterji, M. (1993). Reputation, membership and wages in an open shop trade union, Oxford Economic Papers, 45(1), 23-41.

Booth, A.L. & Chatterji, M. (1995). Union membership and wage bargaining when membership is not compulsory, Economic Journal, 105(429), 345-360. doi. 10.2307/2235495

Calmfors, L., & Driffill, J. (1988). Bargaining structure, corporatism and macroeconomic performance, Economic Policy, 3(6), 13-61. doi. 10.2307/1344503

Carlin, W., & Soskice, D. (1990). Macroeconomics and the Wage Bargain. Oxford University Press.

Corneo, G.G. (1997). The theory of the open shop trade union reconsidered, Labour Economics, 4(1), 71-84. doi. 10.1016/S0927-5371(96)00023-1

de Menil, G. (1971). Bargaining: Monopoly Power versus Union Power. M.I.T. Press, Cambridge.

Duncan, G.M., & Leigh, D.E. (1985). The endogeneity of union status: An empirical test, Journal of Labor Economics, 3(3), 385-402. doi. 10.1086/298061

Dunlop, J.T. (1944). Wage Determination Under Trade Unions. New York: Macmillan Co.

Earle, J.S. & Pencavel, J. (1990). Hours of work and trade unionism, Journal of Labor Economics, 8(1), S150-S174. doi. 10.1086/298248

Farber, H.S. (1986). The analysis of union behavior, In Handbook of Labor Economics, Vol II, by O. Ashenfelter & R. Layard (Eds.).

Flanagan, R.J. (1999). Macroeconomic performance and collective bargaining: An international perspective, Journal of Economic Literature, 37(3), 1150-1175. doi. 10.1257/jel.37.3.1150

Grossman, G.M. (1983). Union wages, temporary lay-offs, and seniority, American Economic Review. Reprinted in Economic Models of Trade Unions, by P. Garonna, P. Mori & P. Tedeschi (Eds.). Chapman & Hall, 1992.

Holmlund, B., & Lundborg, P. (1999). Wage bargaining, union membership, and the organization of unemployment insurance, Labour Economics, 6(3), 397-415. doi. 10.1016/S0927-5371(99)00010-X

Kaufman, B.E. (1991). The Economics of Labor Markets. The Dryden Press, 3rd. Edition.

Layard, R., Nickell, S., & Jackman, R.. (1991). Unemployment: Macroeconomic Performance and the Labour Market. Oxford University Press.

Lever, M., & van Veen, T. (1991). Union wage setting, employment and investment: A survey of theory and empirical evidence, Labour, 5(3), 25-61. doi. 10.1111/j.1467-9914.1991.tb00045.x

Lewis, H.G. (1959). Competitive and monopoly unionism, In P. Bradley, (Ed.), The Public Stake in Union Power. Charlottesville, Virginia: University of Virginia Press, pp.181-208.

Lindbeck, A., & Snower, D.J. (1990). The Insider-Outsider Theory of Employment and Unemployment. Macmillan.

McDonald, I.M., & Solow, R.M. (1981). Wage bargaining and employment, American Economic Review, 71(4), 896-908.

Moreton, D.R. (1998). An open shop trade union model of wages, effort and membership, European Journal of Political Economy, 14(3), 511-527. doi. 10.1016/S0176-2680(98)00019-6

Mori, P.A., & Tedeschi, P. (1992). Economic models of trade unions: An introduction, In Economic Models of Trade Unions, by P. Garonna, P. Mori & P. Tedeschi (Eds.). Chapman & Hall.

Naylor, R., & Cripps, M. (1993). The open shop union, wages, and management opposition, European Economic Review, 37(8), 1599-1620.

Naylor, R., & Raaum, O. (1993). The open shop union, wages, and management opposition, Oxford Economic Papers, 45(4), 589-604.

Oswald, A.J. (1982). The microeconomic theory of the trade union, Economic Journal, 92(367), 576-595. doi. 10.2307/2232551

Rees, A. (1989). The Economics of Trade Unions. University of Chicago Press, 3rd Edition.

Tantarelli, E. (1986). The regulation of inflation and unemployment, Industrial Relations, 25(1), 1-15. doi. 10.1111/j.1468-232X.1986.tb00664.x

Ulph, A., & Ulph, D. (1990). Union bargaining: A survey of recent work, In Current Issues in Labour Economics, by D. Sapsford & Z. Tzannatos, (Eds.), Macmillan.

Vanek, J. (1970) General Theory of Labour-Managed Market Economies. Cornell University Press, Ithaca.




DOI: http://dx.doi.org/10.1453/jeb.v3i4.1135

Refbacks

  • There are currently no refbacks.


.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics Bibliography - J. Econ. Bib.  - JEB - www.kspjournals.org

ISSN: 2149-2387.

Editor: jeb@ksplibrary.org  Secretarial: secretarial@ksplibrary.org  Istanbul - Turkey.

Copyright © KSP Library