Uncertainty, Unions and the Theory of Public Sector Labour Markets

Andrew Oswald, Paul Grout and David Ulph
Additional contact information
David Ulph: Bristol University

No 556, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

Abstract: Although public sector unionism is growing throughout the industrialized nations, and there is widespread interest in the question of how such labor markets operate, little theoretical work has been done on these problems. The paper develops a two sector general equilibrium model in which a government and a public sector union together negotiate an efficient contract. Public sector wages turn out to be sticky compared to those in the private sector, and there is over-employment in the publicly run half of the economy. The model's features are rather different from those in the private contract literature. Extensions of the model to include union-run insurance, endogenous membership, missing capital markets and public goods are also considered.

Keywords: unions; public sector (search for similar items in EconPapers)
JEL-codes: C65 (search for similar items in EconPapers)
Date: 1984-07
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://dataspace.princeton.edu/bitstream/88435/dsp01zw12z529m/1/176.pdf
Our link check indicates that this URL is bad, the error code is: 500 Internal Server Error

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:176

Access Statistics for this paper

More papers in Working Papers from Princeton University, Department of Economics, Industrial Relations Section. Contact information at EDIRC.
Bibliographic data for series maintained by Bobray Bordelon ().