Insiders, Non-Market Activity and Unemployment
The paper extends the theory of trade unions. In past studies, the union members derive utility exclusively from the consumption of goods produced in markets. We consider the case where the union insider is a member of a household which derives utility both from market produced goods and from a non-market activity (such as household production or leisure). The model in the paper determines the equilibrium levels of the bargained wage, employment, unemployment, discouraged workers and non-market activity.
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|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia|
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