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A Model of Endogenous Union Density and Membership

Habib Ahmed () and Stephen M. Miller ()

No 1999-01, Working papers from University of Connecticut, Department of Economics

Abstract: We develop a theoretical model of endogenously determined union density and union membership. A union is formed, continued, or dissolved by majority voting. Given the profitability, production technology, and labor and product market conditions, the union determines the reservation wage that is acceptable to the firm. Based on this reservation wage and other subjective factors, workers vote for or against the union. If the union is formed, the firm determines the employment level at the union wage.

Keywords: unions; bargaining; median voter (search for similar items in EconPapers)
JEL-codes: J5 (search for similar items in EconPapers)
Date: 1999-07
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Persistent link: http://EconPapers.repec.org/RePEc:uct:uconnp:1999-01

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