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Unemployment Insurance and Union Behavior: Comparison of Some Paradigms and Endogenous Membership

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  • Ana Paula Martins

Abstract

This paper discusses the sensitivity of the labor market outcome in the standard bargaining paradigms - monopoly union and efficient bargaining - to the existence of a budget constraint pending on the financing of the unemployment benefit. Consequences of how the unions value members and members' status (employed or unemployed) in their collective maximand, implications of union having control over membership, and, hence, of unemployment insurance coverage, are also considered, as well as of different fiscal scenarios on the form of financing the unemployment benefit bill.

Suggested Citation

  • Ana Paula Martins, 2012. "Unemployment Insurance and Union Behavior: Comparison of Some Paradigms and Endogenous Membership," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 55(1), pages 19-38.
    • Handle: RePEc:eei:journl:v:55:y:2012:i:1:p:19-38
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    Cited by:

    1. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Empirical Evidence," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 25-53.
    2. Ana Paula Martins, 2011. "Compliance with the Institutional Wage in Dualistic Models," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 54(2), pages 93-126.
    3. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Theory," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 1-24.
    4. William H. Greene & Ana P. Martins, 2002. "Striking Features of the Labor Market," EERI Research Paper Series EERI RP 2002/08, Economics and Econometrics Research Institute (EERI), Brussels.

    More about this item

    Keywords

    Unions; Wage Determination Models; Unemployment Benefit; Unemployment Insurance; Union Wage Bargaining; Union Membership.;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other

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