We consider a simple general equilibrium model with imperfect competition on the labor market. We show that on this market a rise in the number of trade unions may reduce the employment level. This result depends on the properties of the nominal wage-elasticity of the labor demand. It is achieved for standard specifications on technology and preferences. It's principally based on an intermediate complementary between production factors.
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Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number
96a29.
Length: 12 pages Date of creation: 1996 Date of revision: Handle: RePEc:fth:aixmeq:96a29
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Find related papers by JEL classification: D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution