Organization of the Labour Market
In this paper, we analyse the organization of the labour market in a general equilibrium model of a closed economy with two industries and two types of labour input. Workers are organized in industry- and skill-specific unions. The wage is set in cooperation either between identical labour types across industries or within industries across labour types. If the organization structure is endogenous, the result will be joint unions of homogenous groups; the structure with the highest employment.
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