A Theory of Union Power and Labor Turnover
AbstractIn this paper we develop a theory of union power based on the aggregation of bargaining power of individual workers with firm specific skills. Union power depends on the ease of replacement from internal and external labor markets. Unions increase the bargaining power of insiders only in states of the world in which the firm would like to retain insiders but not hire outsiders. We show that union formation leads to inefficient retention of workers in the firm.
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Bibliographic InfoPaper provided by Boston University - Industry Studies Programme in its series Papers with number 0072.
Date of creation: Oct 1996
Date of revision:
Contact details of provider:
Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.
Web page: http://www.bu.edu/econ/isp/
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Other versions of this item:
- Kuhn, K.U. & Padilla, A.J., 1996. "A Theory of Union Power and Labour Turnover," UFAE and IAE Working Papers 327.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Kuhn, K.U. & Padilla, A.J., 1996. "A Theory of Union Power and Labor Turnover," Papers 72, Boston University - Industry Studies Programme.
- Kuhn, K.U. & Padilla, A.J., 1996. "A Theory of Union Power and Labor Turnover," Papers 9601, Centro de Estudios Monetarios Y Financieros-.
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- J69 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Other
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