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On the Measurement and Determination of Trade Union Power

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  • McDonald, Ian M
  • Suen, Anthony

Abstract

The object of this paper is to develop a method by which trade-union power can be measured and by which the factors that influence the trade-union power can be identified. In the paper, two models of unions are compared--the insider-dominated union and the open union model. In both models, the outcome for wages and unemployment is determined by the asymmetric Nash solution. The method is applied to aggregate Australian data. The results suggest that union power is negatively related to the rate of unemployment, and positively related to union density, and that the accord tended to reduce union power. Copyright 1992 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 54 (1992)
Issue (Month): 2 (May)
Pages: 209-24

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Handle: RePEc:bla:obuest:v:54:y:1992:i:2:p:209-24

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Cited by:
  1. canegrati, emanuele, 2006. "The Single Mindedness Theory of Labor Unions," MPRA Paper 1224, University Library of Munich, Germany.
  2. Ellen Brock & Sabien Dobbelaere, 2003. "Has International Trade Affected Workers?Bargaining Power?," LICOS Discussion Papers 13603, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  3. Hirsch, Boris & Schnabel, Claus, 2011. "Let's take bargaining models seriously: The decline in union power in Germany, 1992 - 2009," Discussion Papers 73, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Torberg Falch & Bjarne Strøm, 2004. "Wage Bargaining and Monopsony," Working Paper Series 4304, Department of Economics, Norwegian University of Science and Technology.
  5. Canegrati, Emanuele, 2007. "The Single-Mindedness of Labor Unions: Theory and Empirical Evidence," MPRA Paper 1398, University Library of Munich, Germany.
  6. canegrati, emanuele, 2007. "The single-mindedness of labor unions when transfers are not Lump-Sum," MPRA Paper 2320, University Library of Munich, Germany.
  7. Pull, Kerstin, 1999. "What is the fair wage? A model of as-if-co-operation," Quint-Essenzen 58, Institute for Labour Law and Industrial Relations in the European Community (IAAEG), University of Trier.
  8. Daniele Checchi, 2000. "Time series evidence on union densities in European countries," Departmental Working Papers 2000-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  9. Amoroso, S., 2013. "Heterogeneity of innovative, collaborative, and productive firm-level processes," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5663713, Tilburg University.
  10. Askildsen, Jan Erik & Nilsen, Oivind Anti, 2002. "Union membership and wage formation," European Journal of Political Economy, Elsevier, vol. 18(2), pages 345-363, June.
  11. Levy, A., 1999. "Profit and Non-Profit Maximising Network Density, Membership Fees and Service in Monopolistic and Duopolistic Framework," Economics Working Papers wp99-2, School of Economics, University of Wollongong, NSW, Australia.

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