Reputation, Membership and Wages in Open Shop Trade Union
In Britain there is no longer statutory support for the closed shop and in the United States many states have right-to-work laws. Wages and membership determination are examined in this setting. The main findings are: (1) already established unions will not necessarily wither away with the mere passage of right-to-work laws: (2) however, they may disintegrate when faced with substantial negative demand shocks; (3) new unions will find it harder to become established; (4) greater dispersion in worker attitudes to joining unions will lower membership but not necessarily wages, which is broadly consistent with some empirical studies. Copyright 1993 by Royal Economic Society.
Volume (Year): 45 (1993)
Issue (Month): 1 (January)
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