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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
Date of revision:
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

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  1. Mathieu Taschereau-Dumouchel, 2011. "The Union Threat," 2011 Meeting Papers 434, Society for Economic Dynamics.
  2. Shouyong Shi & Guido Menzio, 2009. "Block Recursive Equilibria for Stochastic Models of Search on the Job," 2009 Meeting Papers 177, Society for Economic Dynamics.
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  4. Arthur J. Hosios, 1990. "On The Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Oxford University Press, vol. 57(2), pages 279-298.
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  11. Emin Dinlersoz & Jeremy Greenwood, 2012. "The Rise and Fall of Unions in the United States," Economie d'Avant Garde Research Reports 19, Economie d'Avant Garde.
  12. Emin Dinlersoz & Jeremy Greenwood, 2012. "The Rise And Fall Of Unions In The U.S," Working Papers 12-12r, Center for Economic Studies, U.S. Census Bureau, revised Jun 2013.
  13. Sanvi Avouyi-Dovi & Denis Fougère & Erwan Gautier, 2013. "Wage Rigidity, Collective Bargaining, and the Minimum Wage: Evidence from French Agreement Data," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1337-1351, October.
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  26. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
  27. Garey Ramey & Wouter J. den Haan & Joel Watson, 2000. "Job Destruction and Propagation of Shocks," American Economic Review, American Economic Association, vol. 90(3), pages 482-498, June.
  28. E. S. Phelps & R. A. Pollak, 1968. "On Second-Best National Saving and Game-Equilibrium Growth," Review of Economic Studies, Oxford University Press, vol. 35(2), pages 185-199.
  29. Lockwood, Ben & Manning, Alan, 1989. "Dynamic Wage-Employment Bargaining with Employment Adjustment Costs," Economic Journal, Royal Economic Society, vol. 99(398), pages 1143-58, December.
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  31. Klas Fregert & Lars Jonung, 2007. "Policy rule evaluation by contract-makers: 100 years of wage contract length in Sweden," European Economy - Economic Papers 2008 - 2015 270, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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