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The Open Shop Union, Wages, and Management Opposition

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  • Naylor, Robin
  • Raaum, Oddbjorn

Abstract

This paper develops a model of union-firm bargaining in which union membership is determined with the wage through the impact of management opposition to unionization. Empirical evidence, both for the United States and the United Kingdom, suggests that management opposition to unions is an important determinant of union membership necessary for the union to be able to obtain a wage mark-up and the authors analyze how this critical level varies with the parameters of the model, such as the competitive wage and the firm's product market conditions. Copyright 1993 by Royal Economic Society.

Suggested Citation

  • Naylor, Robin & Raaum, Oddbjorn, 1993. "The Open Shop Union, Wages, and Management Opposition," Oxford Economic Papers, Oxford University Press, vol. 45(4), pages 589-604, October.
  • Handle: RePEc:oup:oxecpp:v:45:y:1993:i:4:p:589-604
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    Citations

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    Cited by:

    1. Alex Bryson, 2006. "Union Free-Riding in Britain and New Zealand," CEP Discussion Papers dp0713, Centre for Economic Performance, LSE.
    2. Yann Algan & Pierre Cahuc & Philippe Aghion, 2008. "Can Policy influence culture? Minimum Wage and the Quality of Labor relations," 2008 Meeting Papers 574, Society for Economic Dynamics.
    3. Pierre Cahuc & Philippe Aghion & Yann Algan, 2008. "Can Policy Interact with Culture? Minimum Wage and the Quality of Labor Relations," Sciences Po publications 3680, Sciences Po.
    4. Corneo, Giacomo G., 1997. "The theory of the open shop trade union reconsidered," Labour Economics, Elsevier, vol. 4(1), pages 71-84, March.
    5. Bastos, Paulo & Kreickemeier, Udo & Wright, Peter, 2009. "Oligopoly, open shop unions and trade liberalisation," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 679-686, November.
    6. Robin Naylor, 1995. "Unions in Decline?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 127-142.
    7. Schnabel, Claus & Wagner, Joachim, 2003. "Trade union membership in Eastern and Western Germany: convergence or divergence?," Discussion Papers 18, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    8. Ruiz-Verdu, Pablo, 2007. "The economics of union organization: Efficiency, information and profitability," Labour Economics, Elsevier, vol. 14(5), pages 848-868, October.
    9. Laszlo Goerke & Markus Pannenberg, 2007. "Trade Union Membership and Works Councils in West Germany," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 14(2), pages 154-175.
    10. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries : Evidence from Micro Data, 2002/03," Discussion Papers 31, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    11. Daniele Checchi, 2000. "Time series evidence on union densities in European countries," Departmental Working Papers 2000-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    12. Naylor, Robin, 1996. "On the credibility of harassment in the insider--outsider model," European Journal of Political Economy, Elsevier, vol. 11(4), pages 725-732, April.
    13. Chang, Juin-jen & Lai, Ching-chong, 1999. "Carrots or sticks? A social custom viewpoint on worker effort," European Journal of Political Economy, Elsevier, vol. 15(2), pages 297-310, June.
    14. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 361-408, October.
    15. Wiji Arulampalam & Alison L. Booth, 2000. "Union status of young men in Britain: a decade of change," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(3), pages 289-310.
    16. Georgios Marios Chrysanthou, 2007. "Determinants of Trade Union Membership in Great Britain During 1991-2003," Discussion Papers 07/01, Department of Economics, University of York.
    17. Laszlo Goerke & Markus Pannenberg, 2004. "Norm-Based Trade Union Membership: Evidence for Germany," German Economic Review, Verein für Socialpolitik, vol. 5(4), pages 481-504, November.
    18. Ana Paula MARTINS, 2016. "Unions and Wage Determination: Can Monopsonist Unions Reduce Unemployment?," Journal of Economics Bibliography, KSP Journals, vol. 3(4), pages 626-643, December.
    19. Giacomo Corneo, 1993. "Semi-unionized bargaining with endogenous membership and management opposition," Journal of Economics, Springer, vol. 57(2), pages 169-188, June.
    20. Ruiz-Verdú, Pablo, 2004. "What do unions do (to nonunion workers)?," DEE - Working Papers. Business Economics. WB wb040202, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    21. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    22. Corneo, Giacomo, 1995. "Social custom, management opposition, and trade union membership," European Economic Review, Elsevier, vol. 39(2), pages 275-292, February.
    23. Kai-Uwe Kuuhn & A. Jorge Padilla, 2002. "Union Power, Replacement and Labour Market Dynamics," Economic Journal, Royal Economic Society, vol. 112(479), pages 317-343, April.
    24. Schnabel, Claus & Wagner, Joachim, 2003. "Determinants of Trade Union Membership in Western Germany: Evidence from Micro Data, 1980-2000," IZA Discussion Papers 708, Institute for the Study of Labor (IZA).

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