IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v8y1996i1p51-59.html
   My bibliography  Save this article

The Rationally Shrinking Union

Author

Listed:
  • Barry Nalebuff
  • Richard Sansing

Abstract

We analyze a voting model in which a democratic monopoly labor union rationally shrinks towards zero over time. In our model, preferences are not single‐peaked so that this shrinkage may occur in spite of objections by the median voter. We characterize the wage‐employment path as a function of the time horizon and the discount rate. We show that the employment path is independent both of the labor demand curve and of the workers’utility functions.

Suggested Citation

  • Barry Nalebuff & Richard Sansing, 1996. "The Rationally Shrinking Union," Economics and Politics, Wiley Blackwell, vol. 8(1), pages 51-59, March.
    • Handle: RePEc:bla:ecopol:v:8:y:1996:i:1:p:51-59
    DOI: 10.1111/j.1468-0343.1996.tb00120.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0343.1996.tb00120.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0343.1996.tb00120.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul Edward Johnson, 1990. "Unraveling in Democratically Governed Groups," Rationality and Society, , vol. 2(1), pages 4-34, January.
    2. Douglas H. Blair & David L. Crawford, 1984. "Labor Union Objectives and Collective Bargaining," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 547-566.
    3. repec:bla:econom:v:57:y:1990:i:228:p:455-66 is not listed on IDEAS
    4. Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-834, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    2. Tobias Brändle & Laszlo Goerke, 2018. "The one constant: a causal effect of collective bargaining on employment growth? Evidence from German linked‐employer‐employee data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(5), pages 445-478, November.
    3. Blanchflower, David G. & Bryson, Alex, 2008. "Union Decline in Britain," IZA Discussion Papers 3436, Institute of Labor Economics (IZA).
    4. repec:eee:labchp:v:2:y:1986:i:c:p:1039-1089 is not listed on IDEAS
    5. Wang, Wen & Lien, Donald, 2018. "Union membership, union coverage and wage dispersion of rural migrants: Evidence from Suzhou industrial sector," China Economic Review, Elsevier, vol. 49(C), pages 96-113.
    6. Scott H. Ainsworth, 1997. "Representation and Institutional Stability," Journal of Theoretical Politics, , vol. 9(2), pages 147-165, April.
    7. Jukka Lassila, 2000. "Wage formation by majority voting and the incentive effects of pensions and taxation," Finnish Economic Papers, Finnish Economic Association, vol. 13(2), pages 89-115, Autumn.
    8. David G. Blanchflower & Alex Bryson, 2022. "Union Membership Peaks in Midlife," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 124-151, March.
    9. Adriana Cassoni, 1999. "Labour demand in Uruguay before and after re-unionisation," Documentos de Trabajo (working papers) 0199, Department of Economics - dECON.
    10. Blanchflower, David G. & Bryson, Alex & Forth, John, 2006. "Workplace Industrial Relations in Britain, 1980-2004," IZA Discussion Papers 2518, Institute of Labor Economics (IZA).
    11. Laszlo Goerke & Markus Pannenberg, 2012. "Risk Aversion and Trade‐Union Membership," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 275-295, June.
    12. Jeffrey S. Zax, 1985. "Municipal Employment, Municipal Unions, and Demand for Municipal Services," NBER Working Papers 1728, National Bureau of Economic Research, Inc.
    13. Renström, Thomas I. & Roszbach, Kasper, 1995. "Trade unions, employee share ownership and wage setting: A supply-side approach to the share economy," SSE/EFI Working Paper Series in Economics and Finance 65, Stockholm School of Economics.
    14. David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
    15. Waheed, Abdul, 2012. "Employment effect of innovation: microdata evidence from Bangladesh and Pakistan," MERIT Working Papers 2012-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Metcalf, David, 1993. "Transformation of British industrial relations? Institutions, conduct and outcomes 1980-1990," LSE Research Online Documents on Economics 20981, London School of Economics and Political Science, LSE Library.
    17. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: A firm-level analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1176, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    18. Blanden, Jo & Machin, Stephen & Van Reenen, John, 2005. "New survey evidence on recent changes in UK union recognition," LSE Research Online Documents on Economics 768, London School of Economics and Political Science, LSE Library.
    19. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
    20. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute of Labor Economics (IZA).
    21. Heijs, Joost & Arenas Díaz, Guillermo & Vergara Reyes, Delia Margarita, 2019. "Impact of innovation on employment in quantitative terms: review of empirical literature based on microdata," MPRA Paper 95326, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:8:y:1996:i:1:p:51-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.