A labor market with search and matching frictions, where wage setting is controlled by a monopoly union that follows a norm of wage solidarity, is found vulnerable to substantial distortions associated with holdup. With full commitment to future wages, the union achieves efficient hiring in the...

The eight countries examined in this study--Austria, Belgium, Denmark, Finland, Germany, the Netherlands, Norway and Sweden--have long been viewed as exemplifying "corporatist" industrial relations systems, in which union coverage is high, unions are influential and commonly have strong ties to...