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Unions in a Frictional Labor Market

  • Leena Rudanko

    (Boston University)

  • Per Krusell

    (IIES, Stockholm University)

We model a labor market with search and matching frictions where some or all workers belong to a (centralized) union, both in the case where coverage is exogenously given and where it is endogenous. Unions are assumed to choose identical wages for all unionized workers, and firms are assumed not to be able to discriminate with respect to union status in their hiring and firing policies. We characterize efficiency and unemployment outcomes for this economy.

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Paper provided by Society for Economic Dynamics in its series 2011 Meeting Papers with number 320.

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Date of creation: 2011
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Handle: RePEc:red:sed011:320
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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