On Compatibility of Unionized Labor

Manfred J. Holler, Birgit Layes and Ralf Winckler
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Manfred J. Holler: Department Institute of SocioEconomics, University of Hamburg, Hamburg, Germany
Birgit Layes: Institute of SocioEconomics, University of Hamburg, Hamburg, Germany
Ralf Winckler: Institute of SocioEconomics, University of Hamburg, Hamburg, Germany

Homo Oeconomicus, 1999, vol. 15, 369-378

Abstract: High- and low-quality workers are organized in their respective unions. Downward compatibility of high-quality workers enhances the perceived work qualities of both groups and increases the demand for low-quality workers. An equilibrium exists so that both unions prefer that high-quality workers are allowed to do the job of members of union of the low-quality workers. The social evaluation of this result is however ambiguous, depending in the size of the exogenous parameters of the model which is used for the analysis.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:hom:homoec:v:15:y:1999:p:369-378

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