Wage-Employment Determination and a Union Tax on Capital: Can Theory and Evidence be Reconciled?
نویسندگان
چکیده
If unions appropriate quasi-rents from relation-specific capital, observed factor prices no longer reflect effective costs. Unionism has effects akin to a partial factor tax on capital. Demand curve settlements need not imply higher K/L among union firms. JEL code: J51 (Trade Unions: Objectives, Structure, and Effects) *Helpful suggestions were received from John Chilton, Eric Maskin, and Joe Stone.
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