Union membership and employment dynamics: A note
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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- Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
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