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Trade unions vs. statistical discrimination: Theory and application to post-apartheid South Africa

Listed author(s):
  • Azam, Jean-Paul
  • Rospabe, Sandrine

A simple model of statistical discrimination is analyzed, which captures some stylized facts of the South African labor market. It shows that this type of discrimination disappears when the wage rates are determined by efficient bargaining between a representative firm and a union, with endogenous membership. This may explain why the wage gap between Black and White workers in post-apartheid South Africa is smaller among unionized workers than among non-unionized ones.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 84 (2007)
Issue (Month): 1 (September)
Pages: 417-444

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Handle: RePEc:eee:deveco:v:84:y:2007:i:1:p:417-444
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  7. Wintrobe,Ronald, 2000. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521794497, December.
  8. Sandrine Rospabéa, 2002. "How Did Labour Market Racial Discrimination Evolve After The End Of Apartheid?," South African Journal of Economics, Economic Society of South Africa, vol. 70(1), pages 185-217, 03.
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  17. Myles, Gareth D. & Naylor, Robin A., 1995. "Do unions reduce discrimination? A model of Nash bargaining between a union and an employer with discriminatory tastes," Labour Economics, Elsevier, vol. 2(3), pages 249-274, September.
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