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This chapter discusses three major trade union models: (1) the monopoly union model, where the union exploits monopoly power to pick the wage, resulting in too little employment; (2) the right-to-manage model, where the union and firm bargain over wages and the firm sets employment; and (3) the efficient bargaining model, where the union and firm bargain over both wages and employment simultaneously. It also covers the phenomenon of "corporatism" and how insider-outsider models can explain hysteresis in une

Author
tegegn mogessie
Language
EN

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