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On Compatibility of Unionized Labor

Author

Listed:
  • Manfred J. Holler

    (Department Institute of SocioEconomics, University of Hamburg, Hamburg, Germany)

  • Birgit Layes

    (Institute of SocioEconomics, University of Hamburg, Hamburg, Germany)

  • Ralf Winckler

    (Institute of SocioEconomics, University of Hamburg, Hamburg, Germany)

Abstract

High- and low-quality workers are organized in their respective unions. Downward compatibility of high-quality workers enhances the perceived work qualities of both groups and increases the demand for low-quality workers. An equilibrium exists so that both unions prefer that high-quality workers are allowed to do the job of members of union of the low-quality workers. The social evaluation of this result is however ambiguous, depending in the size of the exogenous parameters of the model which is used for the analysis.

Suggested Citation

  • Manfred J. Holler & Birgit Layes & Ralf Winckler, 1999. "On Compatibility of Unionized Labor," Homo Oeconomicus, Institute of SocioEconomics, vol. 15, pages 369-378.
    • Handle: RePEc:hom:homoec:v:15:y:1999:p:369-378
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