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Union membership and employment dynamics: A note

  • Dittrich, Marcus
  • Schirwitz, Beate

We show that the well-known result that static union models overstate distortions caused by unionism only holds in the special case of firm-level wage setting. With centralized wage setting, however, it rather depends on both the elasticity of labor demand and union's time preference rate whether static models overrate or even underrate unions' distortions.

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File URL: http://www.sciencedirect.com/science/article/B6V84-514Y24D-1/2/0d1f167bfe95e3a74c2d2c4e76045172
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 110 (2011)
Issue (Month): 1 (January)
Pages: 38-40

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Handle: RePEc:eee:ecolet:v:110:y:2011:i:1:p:38-40
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Marcus Dittrich, 2008. "Union wage setting in a dual labour market: the role of centralisation," International Economic Journal, Taylor & Francis Journals, vol. 22(4), pages 461-470.
  2. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
  3. Carruth, Alan A & Disney, Richard F, 1988. "Where Have Two Million Trade Union Members Gone?," Economica, London School of Economics and Political Science, vol. 55(217), pages 1-19, February.
  4. Kidd, David P & Oswald, Andrew J, 1987. "A Dynamic Model of Trade Union Behaviour," Economica, London School of Economics and Political Science, vol. 54(215), pages 355-65, August.
  5. Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
  6. Chang, Juin-jen & Lai, Ching-chong, 1997. "Union membership and employment dynamics with endogenous union density," Economics Letters, Elsevier, vol. 57(1), pages 119-125, November.
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