A Dynamic Model of Union Membership and Employment
This paper incorporates the ideas that a union maximizes an intertemporal objective function, that it recognizes some link between present wage and employment levels and future membership, and that it has an interest in the level of membership attained. The authors model membership decisions with stochastic demand and a differential layoff rate for union and nonunion workers. Membership dynamics are behavioral in that membership increases when the utility of being a member exceeds the utility of not being a member. The model permits a variety of possible relationships between employment and membership in the adjustment to steady state. Copyright 1994 by The London School of Economics and Political Science.
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Volume (Year): 61 (1994)
Issue (Month): 242 (May)
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