Ferguson, William D. - In: Eastern Economic Journal 20 (1994) 4, pp. 387-401
This paper merges a cost-based model of union bargaining power, in which bargaining power reflects relative costs of … positively to the real wage. Union bargaining alters the effort/wage relationship to increase the wage for a given level of … effort. The model predicts that employment decline or rising import penetration in unionized industries will diminish union …