Routledge Dictionary of Economics, Second Edition
An association of workers or employers, especially the former. Trade unions have always been concerned with both the short- and the long-term welfare of their members—with varying degrees of success. These unions have been analysed as monopolists in the labour market, creating market imperfections. Unions are often criticized for opposing technical change but they can raise PRODUCTIVITY by encouraging co-operation between management and labour.
Many models of wage bargaining assume that the employer unilaterally selects the level of employment and that the union can only influence the wage level, but there are models assuming that unions can bargain about both employment and wages.
See also: closed shop; right-to-work state; strike; union shop; US labor union; yellow dog contract
References
Booth, A.L. (1995) The economics of the trade union, Cambridge, New York and Melbourne: Cambridge University Press.
Hirsch, B.T. and Addison, I.T. (1986) The Economic Analysis of Unions: New Approaches and Evidence, Boston: Allen & Unwin.
MacDonald, I.M. and Solow, R.M. (1981) ‘Wage bargaining and employment’, American Economic Review 71:896–908.
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