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Do Trade Unions Reduce Job Opportunities of Non-members?

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Author Info
Black, Jane M
Bulkley, I George

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Abstract

This paper examines the structure of the optimal contract that would be chosen by a self-interested trade union that represents the interests of some set of M members when it is assumed that there exists a pool of unemployed workers outside the union whose opportunity cost of working is such that they would, at least in some states of demand, have been employed in a competitive labor market. The authors compare wage and employment levels under such a contract with those that would be observed in competitive markets, in particular, focusing on the impact of the union on the employment opportunities and welfare of non-union members. Copyright 1989 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 99 (1989)
Issue (Month): 394 (March)
Pages: 177-86
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Handle: RePEc:ecj:econjl:v:99:y:1989:i:394:p:177-86

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  1. David G. Blanchflower, 1991. "Fear, Unemployment and Pay Flexibility," NBER Working Papers 3365, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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