Chaudhuri, Sarbajit; Dastidar, Krishnendu Ghosh - In: Pacific Economic Review 19 (2014) 5, pp. 559-576
This paper develops a model of determination of the unionized wage in the presence of both collective bargaining and an efficiency wage. The efficiency of each worker is positively related to both the wage and the unemployment rate in the economy. The unionized wage is greater than the...