What are the effects of firm- and sector-level trade unions on unemployment and aggregate output if individuals have rent-sharing motives? To answer this question, we extend a Melitz-type model to unionized labor markets. Because individual rent-sharing motives are only taken into account and...

Trade unions are typically able to convert their industrial power into political power. We show that, depending on the parameter constellation, stronger trade unions may be welfare-improving in terms of an increase in aggregate employment and output, if they successfully lobby for lower trade...

Trade unions are typically able to convert their industrial power into political power. We show that, depending on the parameter constellation, stronger trade unions may be welfare-improving in terms of an increase in aggregate employment and output, if they successfully lobby for lower trade...

Union membership has declined 24.2 percent since 1945. Declining union membership leads to economic losses for labor unions. The problem is relevant to scholars and the labor movement, requiring a deeper understanding of union membership decline. In this qualitative study, experiences with...

Focusing on the cost-reducing motive behind the use of temporary agency employment, this paper aims at providing a better theoretical understanding of the effects of temporary agency work on the wage-setting process, trade unions' rents, firms' profits and employment. It is shown that trade...

Trade unions distort a profit-maximising firm's input choice. The nature of the resulting inefficiency depends on whether there are wage negotiations or there is efficient bargaining. Moreover, trade unions redistribute income and thereby affect welfare. If firms also pursue Corporate Social...

Collective bargaining over labour conditions between unions and employers is a key labour market institution in democratic societies, guaranteed by international and national law. Its coverage, organization and impact have varied over time and across countries. Inclusive bargaining, conducted by...

The basic trade union model is extended to allow for a more sophisticated unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. The purpose of this extension is...

This paper aims at contributing to the discussions on the challenge of transitioning from precarious informal employment to more protected employment. This paper looks into a rather under-researched area - the role of trade unions in facilitating this process of 'transitioning' as well as in...

As a consequence of falling relative demand for low skilled labor in the OECD, people with no or minor qualification experience a deterioration of their economic situation. While flexible labor markets have led to higher wage differentials in the USA, the major problem of most European countries...