A Model of Union Formation
AbstractIn an analysis of the formation of unions within a single firm, this paper addresses conditions under which encompassing unions form. It is shown that a production function satisfying decreasing marginal productivity leads to the formation of encompassing unions. This result holds for different ways of dividing the surplus within the union. The effects of changes in heterogeneity, e.g. increased demand for skilled labor, are also analyzed. In the most reasonable setup, a change in heterogeneity does not affect the decision whether to form a union or not. This contrasts with the result in June (1989).
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Bibliographic InfoPaper provided by Uppsala - Working Paper Series in its series Papers with number 1999:8.
Length: 38 pages
Date of creation: 1999
Date of revision:
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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
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Fax: + 46 18 471 14 78
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LABOUR ; WORKERS' REPRESENTATION ; ENTERPRISES;
Other versions of this item:
- D20 - Microeconomics - - Production and Organizations - - - General
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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