This paper develops a theoretical model of the <MI>simultaneous<D> determination of union wages and union membership, and empirically implements the model using the 1990 Workplace Industrial Relations Survey. The empirical literature on union wage gaps has long recognized that union membership may be...</d></mi>

The paper examines the optimal level of training investment when trained workers are mobile, wage contracts are time-consistent, and training comprises both specific and general skills. It is shown that, in the absence of a social planner, the firm has ex-post monopsonistic power that drives...