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Insiders, Non-Market Activity and Unemployment

Author

Listed:
  • Lye, J.N.
  • McDonald, I.M.
  • Sibly, H.

Abstract

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.

Suggested Citation

  • Lye, J.N. & McDonald, I.M. & Sibly, H., 1996. "Insiders, Non-Market Activity and Unemployment," Department of Economics - Working Papers Series 530, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:530
    as

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    More about this item

    Keywords

    UNEMPLOYMENT; LABOUR MARKET; TRADE UNIONS;
    All these keywords.

    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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