We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We …

wage bargaining into a wide variety of growth models. It is shown that unions might foster economic growth, but this result …

workers are unionized and their wages depend on relative union bargaining power. If this power is high enough, then there is … involuntary unemployment. Both workers and firms lobby the central planner of the economy which affects firms' and unions' market …), then the central planner supports labor unions to promote cost-escaping R&D. -- Economic integration ; labor unions …