We model a labor market with search and matching frictions where some or all workers belong to a (centralized) union, both in the case where coverage is exogenously given and where it is endogenous. Unions are assumed to choose identical wages for all unionized workers, and firms are assumed not...

Firms spend substantial resources on creating and maintaining customer relationships. We explore the role of this customer capital for firm level and aggregate dynamics. Building on the neoclassical adjustment cost model of investment, we propose a tractable search theoretic general equilibrium...