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Does labor contract completeness drive unionization? Experimental evidence

Author Info

Listed author(s):
  • Flynn, Sean Masaki
  • Donnelly, Michael

Abstract

Flynn (2005) proposes that the degree to which labor contracts are complete may be a major driving force behind the propensity of employees to unionize. We find behavior consistent with this hypothesis in an experimental production game in which subjects are assigned to playing either employers or employees. The rate at which employees opt for a proxy for unionization more than triples when the labor-contracting regime under which they are working shifts from incomplete to complete labor contracts. Complete labor contracts drive out positive reciprocity, anger workers, and increase their desire to unionize.

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File URL: http://www.sciencedirect.com/science/article/pii/S1053535711000850
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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 41 (2012)
Issue (Month): 4 ()
Pages: 445-454

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Handle: RePEc:eee:soceco:v:41:y:2012:i:4:p:445-454
DOI: 10.1016/j.socec.2011.07.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

Keywords: Unions; Labor contracts; Labor contract completeness;

Find related papers by JEL classification:

  • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
  • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
  • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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