incentives for excessive labour supply in competitive markets. We show that trade unions which are unable to internalise the … establishes that trade unions can have a welfare-enhancing role in a world with relative consumption effects. …

This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … unions can be desirable for income redistribution. Unions bargain with firms over wages in each sector and firms unilaterally … determine employment. Unions raise the efficiency costs of income redistribution, because unemployment benefits and income taxes …

Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in …

This paper brings together the modern literatures on monopsony power and labor unions by empirically examining the … of unions as alleviating market failures induced by imperfect competition. To validate our findings and examine …

overstate distortions caused by unions only holds in the special case of firm-level wage setting. If, however, the union is big …'s time preference whether static frameworks overrate or even underrate unions' distortions. -- unions ; endogenous membership …