Trade Unions and the Choice of Capital Stock

Simon Anderson () and Michael B. Devereux ()

Working Papers from Queen's University, Department of Economics

Abstract: This paper considers the interaction between a firm and trade union in determining employment, wages and capital stock. We take the monopoly trade union model of Oswald (1982), where the union sets the wage, and add the firms choice of capital stock. The standard predictions of the union literature are highly dependent on the degree of strategic dominance of the union vis a vis the firm.

Date: 1985
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Journal Article: Trade Unions and the Choice of Capital Stock (1988)
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