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Do Unions Contract for Added Employment?

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  • Walter J. Wessels

Abstract

The efficient contract model predicts unions will contract for added employment, that is, a level of employment higher than would be predicted by the demand curve for labor. Using three data sets (on Canadian industries in 1971–81, U.S. industries in 1972, and U.S. construction projects in 1973–74) and several estimation techniques, the author estimates and compares labor demand equations for both union and nonunion firms. Some regressions that control for few variables support the added-employment hypothesis, but those with more complete specifications reject it.

Suggested Citation

  • Walter J. Wessels, 1991. "Do Unions Contract for Added Employment?," ILR Review, Cornell University, ILR School, vol. 45(1), pages 181-193, October.
  • Handle: RePEc:sae:ilrrev:v:45:y:1991:i:1:p:181-193
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    Cited by:

    1. Hirsch, Barry T. & Prasad, Kislaya, 1995. "Wage-employment determination and a union tax on capital: Can theory and evidence be reconciled?," Economics Letters, Elsevier, vol. 48(1), pages 61-71, April.
    2. Alex Bryson, 2004. "Unions And Employment Growth In British Workplaces During The 1990s: A Panel Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(4), pages 477-506, September.
    3. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
    4. repec:pri:indrel:dsp01cc08hf62w is not listed on IDEAS

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