Advanced Search
MyIDEAS: Login

Unions: Rent Extractors or Creators?

Contents:

Author Info

  • Aidt, T.S.
  • Vania Sena

Abstract

This paper proposes a model of workplace-specific unions that integrates two (conflicting) views of what unions do: one that unions mainly engage in rent extraction, the other that unions mainly engage in rent creation by providing agency services that increase workplace productivity. In our model, the union leadership makes a choice between the two types of activities, and we demonstrate why it is optimal to engage in both: rent extraction increases the bargained wage rate, rent creation secures higher employment. More importantly, the choice between the two activities depends systematically on the economic and regulatory environment in which the union operates. Unions operating in an environment of intense market competition are mainly engaged in rent extraction. Our model thus suggests that the economic and regulatory environment is an important determinant of “what unions do”, and that changes/differences in this environment can explain changes/differences in union behaviour across time and space.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/wp0236.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0236.

as in new window
Length: 23
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:cam:camdae:0236

Note: L
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm

Related research

Keywords: unions; rent creation; rent extraction; product market competition;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Suphachol Suphachalasai, 2005. "Bureaucratic Corruption and Mass Media," Public Economics 0502014, EconWPA.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cam:camdae:0236. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.