Can Unions Hurt Workers? A Positive Analysis Of Immigration Policy
This paper studies the determinants of immigration policy in an economy with entrepreneurs and workers where a trade union has market power over wages. The presence of the union induces a social welfare maximizing government to implement a high level of immigration, leading to a welfare loss not only from an aggregate point of view but also from the workers' point of view. When interest group politics prevails and workers' ability to influence the policy-maker is strengthened by existence of the union, we show the conditions under which workers may benefit from the presence of the union. Copyright 2007 Blackwell Publishing Ltd..
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Volume (Year): 20 (2008)
Issue (Month): 1 (03)
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