Models with a single central trade union representing the whole labor market are often taken to illustrate the wage-setting process in the Scandinavian countries. This paper argues that the assumption of a single central trade union is not realistic. Therefore, the authors model an economy with...

This paper develops a model of union-firm bargaining in which union membership is determined with the wage through the impact of management opposition to unionization. Empirical evidence, both for the United States and the United Kingdom, suggests that management opposition to unions is an...