Imperfect goods and labor markets, and the union wage gap
- Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers that are covered by collective agreements and others who are not. This study aims at providing a model framework which is amenable for an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called 'union wage gap' is largely determined by the degree of centralization of the bargains, and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.
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| Author details: | Helge SannerGND |
|---|---|
| URN: | urn:nbn:de:kobv:517-opus-6511 |
| Publication type: | Postprint |
| Language: | English |
| Publication year: | 2005 |
| Publishing institution: | Universität Potsdam |
| Release date: | 2006/02/16 |
| Tag: | comparative analysis; dual labor market; monopolistic competition; union wage premium; wage differentials |
| GND Keyword: | Verhandlungstheorie; Monopolistische Konkurrenz; Gewerkschaften |
| Source: | Journal of Population Economics. - ISSN 1432-1475. - Online First (2006), S. 1 - 18 |
| RVK - Regensburg classification: | QC 220, QC 340 |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| External remark: | The original publication is available at www.springerlink.com DOI: 10.1007/s00148-005-0010-6 |
