This paper provides a formal model of union wage and membership determination where the union is recognized for bargaining purposes, where membership of the union is not compulsory, and where the union faces a budget constraint in its organization activities. This simultaneous equation model is...

This 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. The firm has ex post monopsonistic power that drives trained workers' wages below the social optimum. The...