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On Union Preference and Labour Market Models: Neglected Corners
Oxford University.
1984 (English)Report (Other academic)
Abstract [en]

Most of the recent work on the economics of trade unions has used an expected utility (or utilitarian) function to represent the preferences of a labour group. The paper shows that it has been wrongly formulated, presents the corrected version, proves that that is a semi-strictly quasi-concave function, and incorporates it into two labour market models. Corner solutions become important; conventional results change; current testing procedures begin to look more suspect. The models are also used to illustrate and to criticize the "insider-outsider" explanation of persistent unemployment, to discuss possible asymmetries over the trade cycle, and to show why in an efficient bargain the wage may be equal to the value of marginal product.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 40 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 296
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41317OAI: oai:DiVA.org:su-41317DiVA: diva2:329477
Note
Published in connection with a visit at the IIESAvailable from: 2010-07-12 Created: 2010-07-12 Last updated: 2010-07-12

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