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Union membership and employment dynamics: A note

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  • Dittrich, Marcus
  • Schirwitz, Beate

Abstract

We show that the well-known result that static union models overstate distortions caused by unionism only holds in the special case of firm-level wage setting. With centralized wage setting, however, it rather depends on both the elasticity of labor demand and union's time preference rate whether static models overrate or even underrate unions' distortions.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 110 (2011)
Issue (Month): 1 (January)
Pages: 38-40

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Handle: RePEc:eee:ecolet:v:110:y:2011:i:1:p:38-40

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Unions Endogenous membership Bargaining centralization;

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References

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  1. Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
  2. Chang, Juin-jen & Lai, Ching-chong, 1997. "Union membership and employment dynamics with endogenous union density," Economics Letters, Elsevier, vol. 57(1), pages 119-125, November.
  3. Carruth, Alan A & Disney, Richard F, 1988. "Where Have Two Million Trade Union Members Gone?," Economica, London School of Economics and Political Science, vol. 55(217), pages 1-19, February.
  4. Kidd, David P & Oswald, Andrew J, 1987. "A Dynamic Model of Trade Union Behaviour," Economica, London School of Economics and Political Science, vol. 54(215), pages 355-65, August.
  5. Marcus Dittrich, 2008. "Union wage setting in a dual labour market: the role of centralisation," International Economic Journal, Taylor & Francis Journals, vol. 22(4), pages 461-470.
  6. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
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Cited by:
  1. Beate Schirwitz, 2013. "Business Fluctuations, Job Flows and Trade Unions - Dynamics in the Economy," ifo Beitr├Ąge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 47.
  2. Elsayyad, May & Konrad, Kai A., 2012. "Fighting Multiple Tax Havens," Munich Reprints in Economics 13964, University of Munich, Department of Economics.

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