Trade Unions, Economic Behaviour of

    Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary

    Abstract

    A trade union is an organized association of workers formed for the protection and promotion of their common interests. The standard view of unions is that they are monopoly organizations that improve the welfare of members, principally by raising wages above the competitive level. For a union to be able to increase wage rates above the competitive level, there must be some surplus that can be shared between the firm and the union, and the union must have some bargaining power to induce the firm to share this surplus. This article investigates the conditions under which a union can increase wages and explores ways of modeling the competing preferences of unions and management. The article also notes the arguments suggesting that, in the presence of imperfect information and uncertainty, unions may enhance efficiency. To the extent that unions reduce labor turnover and negotiating costs, they may increase the available surplus to be shared between parties.
    Original languageEnglish
    Title of host publicationInternational Encyclopedia of the Social Sciences (2nd ed)
    Editors William A. Darity
    Place of PublicationDetroit
    PublisherMacMillan Reference USA
    Pages497-502
    Edition2nd
    ISBN (Print)9780028661179
    Publication statusPublished - 2008

    Fingerprint Dive into the research topics of 'Trade Unions, Economic Behaviour of'. Together they form a unique fingerprint.

    Cite this