Reputation, Membership and Wages in Open Shop Trade Union

Alison Booth and Monojit Chatterji

Oxford Economic Papers, 1993, vol. 45, issue 1, 23-41

Abstract: In Britain there is no longer statutory support for the closed shop and in the United States many states have right-to-work laws. Wages and membership determination are examined in this setting. The main findings are: (1) already established unions will not necessarily wither away with the mere passage of right-to-work laws: (2) however, they may disintegrate when faced with substantial negative demand shocks; (3) new unions will find it harder to become established; (4) greater dispersion in worker attitudes to joining unions will lower membership but not necessarily wages, which is broadly consistent with some empirical studies. Copyright 1993 by Royal Economic Society.

Date: 1993
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