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Individually-Relational Union Membership

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Author Info
Bulkley, G.
Myles, G.D.

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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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Publisher Info
Paper provided by University of Exeter, School of Business and Economics in its series Discussion Papers with number 00/08.

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Length: 24 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:exetec:00/08

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Related research
Keywords: WORKERS ; WAGES ; CONTRACTS;

Other versions of this item:

Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

Cited by:
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  1. Torberg Falch & Bjarne Strøm, 2004. "Wage Bargaining and Monopsony," Working Paper Series 4304, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
    Other versions:
  2. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries: Evidence from Micro Data, 2002/03," IZA Discussion Papers 1464, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. 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). [Downloadable!]
  4. 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). [Downloadable!]
    Other versions:
  5. 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.com. [Downloadable!]
    Other versions:
  6. Francesco De Sinopoli & Giovanna Iannantuoni, 2005. "Meetings with Costly Participation: Comment," American Economic Review, American Economic Association, vol. 95(4), pages 1349-1350, September. [Downloadable!]
    Other versions:
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