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Union Bargaining Strength as a Public Good: Experimental Evidence

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Author Info

  • Keser, Claudia

    ()
    (Institut für Statistik und Mathematische Wirtschaftstheorie)

  • Rullière, Jean-Louis

    ()
    (GATE - CNRS, Université Lumière Lyon 2)

  • Villeval, Marie-Claire

    (GATE - CNRS)

Abstract

When collective agreements apply to all employees, whether unionized or not, what is the rationale behind joining a union? The paper presents an experiment on a two-stage game. In the first stage, the decision to join a union is modeled as a voluntary contribution to a public good. In the second stage, the unionized employees bargain with the employer over wages. The experimental evidence reveals that: i) the union density is higher than predicted by theory but declining over time, ii) the size of the union increases the employees' bargaining power but not as much as predicted.

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Bibliographic Info

Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 99-20.

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Length: 25 pages
Date of creation: 17 Mar 1999
Date of revision:
Handle: RePEc:xrs:sfbmaa:99-20

Note: Financial Support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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Cited by:
  1. Berninghaus, Siegfried & Guth, Werner & Keser, Claudia, 2003. "Unity suggests strength: an experimental study of decentralized and collective bargaining," Labour Economics, Elsevier, vol. 10(4), pages 465-479, August.
  2. Klaus Abbink & Heike Hennig-Schmidt, 2002. "Neutral versus Loaded Instructions in a Bribery Experiment," Bonn Econ Discussion Papers bgse23_2002, University of Bonn, Germany.

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