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Unionized Contracts with Fixed Wage Rates and State-Contingent Employment Levels

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  • Sampson, Anthony A

Abstract

A union sets a state-independent wage, the firm sets employment along the state-contingent demand-for-labor curve. The union's maximand is the welfare of its cu rrent members. However, it sets a wage at which outsiders are recruit ed in good states, so as to protect insiders' employment prospects in bad states. If these newly recruited workers join the union, there m ay exist an equilibrium membership. Comparative statics results are o btained for government policy measures. Copyright 1988 by The London School of Economics and Political Science.

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  • Sampson, Anthony A, 1988. "Unionized Contracts with Fixed Wage Rates and State-Contingent Employment Levels," Economica, London School of Economics and Political Science, vol. 55(217), pages 95-105, February.
    • Handle: RePEc:bla:econom:v:55:y:1988:i:217:p:95-105
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    Cited by:

    1. Adriana Cassoni, 1997. "A brief survey on the role of trade unions in labour market," Documentos de Trabajo (working papers) 0697, Department of Economics - dECON.

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