The paper considers "efficient bargains", with a union that weighs the utilities of its members unequally and negotiates over group employment levels. Such discrimination may lead to socially inefficient overemployment of the dominant group, and underemployment of the group suffering...

Privately observed ability increases output and reduces effort required to complete tasks, in a model where harder tasks produce more output. The relation between average quality of the workforce and the wage rate is ambiguous. The model also produces a rat-race, in the sense that some...

A union sets a state-independent wage, the firm sets employment along the state-contingent demand-for-labor curve. The union's maximand is the welfare of its cu rrent members. However, it sets a wage at which outsiders are recruit ed in good states, so as to protect insiders' employment...

The poll tax (community charge) recently imposed and subsequently abolished.in the United Kingdom, has proved controversial. This paper examines how a rational trade union would respond to the imposition of a poll tax and then to its replacement by a local income tax. The authors find simple...