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The Effects of union Density of Wages and Employment: A Dynamic Monopoly Union Model

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  • Alan Manning

Abstract

This paper looks at wage and employment determination in a dynamic model where some workers, e.g. non-union members, continue to work in the event of a dispute. It shows that both wages and employment may be a non-monotonic function of union density. It can also explain the situation in which unions are sustainable in the long-run. The model is applied to the analysis of the closed shop and some aspects of recent British trade union legislation.

Suggested Citation

  • Alan Manning, 1991. "The Effects of union Density of Wages and Employment: A Dynamic Monopoly Union Model," CEP Discussion Papers dp0020, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0020
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