The Effect of unemployment benefit degression on union membership of unemployed people
In a non competitive labour market, wages are determined by negotiations between trade unions and employers. We also suppose that two kinds of unemployment benefits follow. In the first, described as stationary, a stable benefit is paid whatever the duration of unemployment. In the second, described as non stationary, a digression is assigned in the unemployment benefit payments, depending on the duration of unemployment. In this paper we will show the impact of this digression on trade union membership choices.