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Do Trade Unions Reduce Job Opportunities of Non-members?

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  • Black, Jane M
  • Bulkley, I George

Abstract

This paper examines the structure of the optimal contract that would be chosen by a self-interested trade union that represents the interests of some set of M members when it is assumed that there exists a pool of unemployed workers outside the union whose opportunity cost of working is such that they would, at least in some states of demand, have been employed in a competitive labor market. The authors compare wage and employment levels under such a contract with those that would be observed in competitive markets, in particular, focusing on the impact of the union on the employment opportunities and welfare of non-union members. Copyright 1989 by Royal Economic Society.

Suggested Citation

  • Black, Jane M & Bulkley, I George, 1989. "Do Trade Unions Reduce Job Opportunities of Non-members?," Economic Journal, Royal Economic Society, vol. 99(394), pages 177-186, March.
  • Handle: RePEc:ecj:econjl:v:99:y:1989:i:394:p:177-86
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    Cited by:

    1. Blanchflower, David G, 1991. "Fear, Unemployment and Pay Flexibility," Economic Journal, Royal Economic Society, vol. 101(406), pages 483-496, May.
    2. Anthony A. Sumpson, 1994. "Implicit Contracts, Trade Unions And Involuntary Unemployment," Bulletin of Economic Research, Wiley Blackwell, vol. 46(1), pages 23-39, January.

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