How Robust Is the Microeconomic Theory of the Trade Union?

Alan Manning

Journal of Labor Economics, 1994, vol. 12, issue 3, 430-59

Abstract: This article argues that the predictions of standard trade-union models and the tests for distinguishing between these models are not robust to quite small and reasonable changes in the conventional assumptions. In particular, it considers the effect of assuming that the ex post substitutability between labor and capital is less than the ex ante substitutability. The paper shows that much of the conventional wisdom about the effects of trade unions is not necessarily true in this framework. Copyright 1994 by University of Chicago Press.

Date: 1994
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Working Paper: How Robust is the Microeconomic theory of the Trade Union? (1992)
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