Coimbra, Rui; Lloyd-Braga, Teresa; Modesto, Leonor - C.E.P.R. Discussion Papers - 2002
We discuss the effects of unions in the labour market on steady-state multiplicity and welfare, and on the occurrence …-Douglas technology, unions increase steady state employment and welfare, and local indeterminacy (sunspots) emerges. Our results show … that the role of unions in shaping local dynamics depends on technology (externalities and factor's substitutability …