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A Structural Model of Trade Union Behaviour under Uncertainty, with Sticky Wage
Author(s) -
Parodi Giuliana
Publication year - 1989
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1989.tb00164.x
Subject(s) - disequilibrium , economics , wage , trade union , profit (economics) , consumption (sociology) , microeconomics , labour economics , medicine , social science , sociology , ophthalmology
ABSTRACT: Trade union concern for job security is modelled under asymmetric information about labour demand, with rigid wage. Sequential decision processes are discussed, for the individual, on whether to join the union (utility defined over consumption and leisure); for the union, about the contribution to charge (utility defined over level of membership and level of contributions); for the employer, on level of labour to hire (profit maximizer). Equilibrium solutions, and ‘disequilibrium‘ solutions with shocked output price, are provided in a general and algebraic formulation; simulations with 1982 British data are shown, with shocks on probability of fall in output price, on technology, and on working time.