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Individually rational union membership

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  • Bulkley, George
  • Myles, Gareth D.

Abstract

The analysis of the determination of union membership has typically met difficulties with the fact that union membership is not individually rational and free-riding is the dominant strategy. We assume that workers differ in their reservation wages and hence in their preferred choice of contract, so preventing free-riding on the contract choice of others. This implies that joining a union is equivalent to buying a vote on the contract and provides an individual incentive to join the union. An equilibrium trade union membership is characterized in which membership is taken up by those with relatively "extreme" tastes. The union achieves a centralist objective even though no member precisely supports such a view.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 17 (2001)
Issue (Month): 1 (March)
Pages: 117-137

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Handle: RePEc:eee:poleco:v:17:y:2001:i:1:p:117-137

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Web page: http://www.elsevier.com/locate/inca/505544

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References

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  1. Naylor, Robin, 1987. "Strikes, Free Riders and Social Customs," The Warwick Economics Research Paper Series (TWERPS) 275, University of Warwick, Department of Economics.
  2. Naylor, Robin & Cripps, Martin, 1993. "An economic theory of the open shop trade union," European Economic Review, Elsevier, Elsevier, vol. 37(8), pages 1599-1620, December.
  3. Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, Elsevier, vol. 14(3), pages 511-527, August.
  4. Vannetelbosch, V. J., . "Wage bargaining with incomplete information in an unionized Cournot oligopoly," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1303, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Bulkley, G. & Myles, G.D. & Pearson, B.R., 2000. "On the Membership of Decision-Making Committees," Discussion Papers, Exeter University, Department of Economics 0009, Exeter University, Department of Economics.
  6. Myles, Gareth D. & Naylor, Robin A., 1995. "Do unions reduce discrimination? A model of Nash bargaining between a union and an employer with discriminatory tastes," Labour Economics, Elsevier, Elsevier, vol. 2(3), pages 249-274, September.
  7. Bulkley, George & Myles, Gareth D., 1997. "Bargaining over effort," European Journal of Political Economy, Elsevier, Elsevier, vol. 13(2), pages 375-384, May.
  8. repec:fth:exetec:00/09 is not listed on IDEAS
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Citations

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Cited by:
  1. Schnabel, Claus & Wagner, Joachim, 2003. "Trade Union Membership in Eastern and Western Germany: Convergence or Divergence?," IZA Discussion Papers 707, Institute for the Study of Labor (IZA).
  2. Rupayan Pal, 2008. "Estimating the Probability of Trade Union Membership in India - Impact of Communist Parties, Personal Attributes and Industrial Characteristics," Labor Economics Working Papers 22366, East Asian Bureau of Economic Research.
  3. Francesco De Sinopoli & Giovanna Iannantuoni, 2005. "Meetings with Costly Participation: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 1349-1350, September.
  4. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries : Evidence from Micro Data, 2002/03," Discussion Papers 31, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  5. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  6. Torberg Falch & Bjarne Strøm, 2004. "Wage Bargaining and Monopsony," Working Paper Series, Department of Economics, Norwegian University of Science and Technology 4304, Department of Economics, Norwegian University of Science and Technology.
  7. Schnabel, Claus & Wagner, Joachim, 2003. "Determinants of Trade Union Membership in Western Germany: Evidence from Micro Data, 1980-2000," IZA Discussion Papers 708, Institute for the Study of Labor (IZA).
  8. Rupayan Pal, 2008. "Estimating the Probability of Trade Union Membership in India: Impact of Communist Parties, Personal Attributes and Industrial Characteristics," Working Papers id:1669, eSocialSciences.
  9. Gábor R., István, 2004. "Tőkésvállalat vis-à-vis szakszervezet, versus termelőszövetkezet. Peripatetikus tanmese az intézményi racionalitás/diverzitás és a piaci önszabályozás ellentmondásos viszonyáról
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    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 740-751.

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