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A Model of Endogenous Union Density and Membership

Author

Listed:
  • Habib Ahmed

    (Islamic Development Bank)

  • Stephen M. Miller

    (University of Connecticut)

Abstract

We develop a theoretical model of endogenously determined union density and union membership. A union is formed, continued, or dissolved by majority voting. Given the profitability, production technology, and labor and product market conditions, the union determines the reservation wage that is acceptable to the firm. Based on this reservation wage and other subjective factors, workers vote for or against the union. If the union is formed, the firm determines the employment level at the union wage.

Suggested Citation

  • Habib Ahmed & Stephen M. Miller, 1999. "A Model of Endogenous Union Density and Membership," Working papers 1999-01, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:1999-01
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    File URL: http://web2.uconn.edu/economics/working/1999-01.pdf
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    References listed on IDEAS

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    7. Dreze, Jacques H. & Modigliani, Franco, 1981. "The trade-off between real wages and employment in an open economy (Belgium)," European Economic Review, Elsevier, vol. 15(1), pages 1-40.
    8. Douglas H. Blair & David L. Crawford, 1984. "Labor Union Objectives and Collective Bargaining," The Quarterly Journal of Economics, Oxford University Press, vol. 99(3), pages 547-566.
    9. Reder, Melvin W, 1988. "The Rise and Fall of Unions: The Public Sector and the Private," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 89-110, Spring.
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    More about this item

    Keywords

    unions; bargaining; median voter;

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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