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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.

Identiferoai:union.ndltd.org:Potsdam/oai:kobv.de-opus-ubp:651
Date January 2005
CreatorsSanner, Helge
PublisherUniversität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. Wirtschaftswissenschaften
Source SetsPotsdam University
LanguageEnglish
Detected LanguageEnglish
TypePostprint
Formatapplication/pdf
SourceJournal of Population Economics. - ISSN 1432-1475. - Online First (2006), S. 1 - 18
Rightshttp://opus.kobv.de/ubp/doku/urheberrecht.php

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