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overstate distortions caused by unions only holds in the special case of firm-level wage setting. If, however, the union is big … enough to determine employment for the whole sector, it rather depends on both the elasticity of labor demand and union’s … time preference whether static frameworks overrate or even underrate unions’ distortions. …
Persistent link: https://www.econbiz.de/10008671723
overstate distortions caused by unions only holds in the special case of firm-level wage setting. If, however, the union is big …'s time preference whether static frameworks overrate or even underrate unions' distortions …
Persistent link: https://www.econbiz.de/10013137869
This paper shows that labor market institutions are important for the formation of new enterprises. The effects of labor market institutions on entrepreneurship, wage determination, and firm size are analysed analytically and illustrated numerically. The main result is that an increase in union...
Persistent link: https://www.econbiz.de/10005181309
Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in …
Persistent link: https://www.econbiz.de/10011086453
In Germany, there is no trade union membership wage premium, while the membership fee amounts to 1% of the gross wage. Therefore, prima facie, there are strong incentives to free-ride on the benefits of trade unionism. We establish empirical evidence for a private gain from trade union...
Persistent link: https://www.econbiz.de/10013137398
This paper sets up a general oligopolistic equilibrium model with two countries that differ in the centralization of union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases welfare and employment in both locations, and it raises...
Persistent link: https://www.econbiz.de/10013100837
This paper proposes an explanation of why union membership has been increasing in some occupations, despite the opportunity to freeride on traditional union benefits. I model membership as legal insurance whose demand increases with the perceived risk of allegations. Using media reports on...
Persistent link: https://www.econbiz.de/10012960116
whose participation is subsidized on a net basis. By creating implicit taxes on work, unions alleviate the labor …This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … unions can be desirable for income redistribution. Unions bargain with firms over wages in each sector and firms unilaterally …
Persistent link: https://www.econbiz.de/10012910614
This paper analyzes unemployment insurance (UI) schemes in the presence of mobile workers and trade unions at industry … types of existing UI systems. When UI is organized at trade union level (decentralized Ghent UI), trade unions strategically … lower the benefit levels of their UI schemes to deter welfare recipients from other unions from entering their UI scheme …
Persistent link: https://www.econbiz.de/10013019042
Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in …
Persistent link: https://www.econbiz.de/10013040479