Open Shop Unions and Product Market Competition

Paulo Bastos, Udo Kreickemeier, Peter W Wright
2006 Social Science Research Network  
In this paper we analyse the impact of changes in product market competition on wage outcomes in the presence of an open shop union. With less than full union membership, product market competition is shown to a¤ect not only a unionised ...rm's pro...ts but also its payo¤ in the event of a dispute. In contrast to the prediction of the standard model, increases in product market competition may now increase wage levels. The model is therefore able to accommodate the mixed empirical ...ndings
more » ... rical ...ndings regarding the impact of product market competition on union wages.
doi:10.2139/ssrn.905243 fatcat:3y77gc72yrgvheernntxr6vrke