A Model of Union Formation

No 1999:8, Working Paper Series from Uppsala University, Department of Economics

Abstract: In an analysis of the formation of unions within a single firm, this paper addresses conditions under which encompassing unions form. It is shown that a production function satisfying decreasing marginal productivity leads to the formation of encompassing unions. This result holds for different ways of dividing the surplus within the union. The effects of changes in heterogeneity, e.g. increased demand for skilled labor, are also analyzed. In the most reasonable setup, a change in heterogeneity does not affect the decision whether to form a union or not. This contrasts with the result in Jun (1989).

Keywords: Union; Heterogeneity; Labor (search for similar items in EconPapers)
JEL-codes: D20 D33 J51 (search for similar items in EconPapers)
Pages: 38 pages
Date: 1999-06-03
New Economics Papers: this item is included in nep-lab and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Working Paper: A Model of Union Formation (1999)
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