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Unions in a Frictional Labor Market

Author

Listed:
  • Leena Rudanko

    (Boston University)

  • Per Krusell

    (IIES, Stockholm University)

Abstract

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.

Suggested Citation

  • Leena Rudanko & Per Krusell, 2011. "Unions in a Frictional Labor Market," 2011 Meeting Papers 320, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:320
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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