Models with a single central trade union representing the whole labor market are often taken to illustrate the wage-setting process in the Scandinavian countries. This paper argues that the assumption of a single central trade union is not realistic. Therefore, the authors model an economy with...

Using a matched employer-employee data set for Norway, we exploit rare information on the union status of both individual employees and their workplaces. We establish two key results. First, we find a positive effect of workplace trade union density on the level of the individual's pay in...

This paper develops a model of union-firm bargaining in which union membership is determined with the wage through the impact of management opposition to unionization. Empirical evidence, both for the United States and the United Kingdom, suggests that management opposition to unions is an...