TY  - JOUR
AU  - Dertouzos,James N.
AU  - Pencavel,John H.
TI  - Wage and Employment Determinants under Trade Unionism: The InternationalTypographical Union
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 570
PY  - 1981
Y2  - December 1981
UR  - http://www.nber.org/papers/w0570
L1  - http://www.nber.org/papers/w0570.pdf
N1  - Author contact info:
James Dertouzos
Rand Corporation
E-Mail: Jim_Dertouzos@rand.org

John H. Pencavel
Department of Economics
Landau Economics
Stanford University
Stanford, CA  94305-6072
Tel: 650-723-3981
E-Mail: pencavel@stanford.edu
AB  - This paper represents the first empirical application of a model of trade union behavior that has been discussed in the literature for over thirty years. The wages and employment o typographers are examined to see whether they can be usefully characterized as the outcome of a process by which the union maximizes an objective function containing wages and employment and is constrained by a trade-off between these two variables as represented by the employer's labor demand function. Our functional form assumptions permit investigation of some familiar special cases of union behavior. We find the parameter implications of both the wage bill maximization hypothesis and the rent maximization hypothesis to provide inferior explanations of the movement of wages and employment of these workers compared with our more general formulation.
ER  -