This paper looks at the consequences of introducing employment adjustment costs into two standard models of trade unions--the right-to-manage model and the efficient-bargain model. The authors look at how unions affect both the speed of adjustment to equilibrium and the long-run equilibrium....

This paper analyses the effect of a non-linear tax system on wage bargaining. The main conclusions are: an increase in the marginal income or payroll tax reduces the pre-tax wage; in the iso-elastic case, an increase in the average tax rate increases the pre-tax wage by more than the tax...