Please use this identifier to cite or link to this item:
|Title:||Uncertainty, Unions and the Theory of Public Sector Labour Markets|
|Series/Report no.:||Working Papers (Princeton University. Industrial Relations Section) ; 176|
|Abstract:||Although public sector unionism is growing throughout the industri- alized nations, and there is widespread interest in the question of how such labour markets operate, little theoretical work has been done on these problems. The paper develops a two sector general equilibrium model in which a government and a public sector union together negotiate an efficient contract. Public sector wages turn out to be sticky com- pared to those in the private sector, and there is over—employment in the publicly run half of the economy. The model's features are rather different from those in the private contract literature. Extensions of the model to include union—run insurance, endogenous membership, missing capital markets and public goods are also considered.|
|Appears in Collections:||IRS Working Papers|
Files in This Item:
|176.pdf||1.89 MB||Adobe PDF||View/Download|
Items in Dataspace are protected by copyright, with all rights reserved, unless otherwise indicated.