Labor Markets Under Trade Unionism

In recent years the study of contracts, bargaining, transaction costs and internal labour markets has considerably extended the theoretical base of labour economics and research on unionism. At the same time there has been a noticeable split between theoretical model-building and the empirical study of the effects of unions on wages. The essential aim of John Pencavel's book is to relate and bring a little closer these two strands. Professor Pencavel provides a selective survey and synthesis of the extensive literature on the subject but relates this, throughout, to the empirical evidence. The analysis is further extended by a comparative study of the North American and British labour markets. This book should push forward the study of labour markets, unionization and wage bargaining. In setting an agenda for future research, Pencavel both draws out the importance of the empirical implementation of theory and stresses the need for a closer understanding by economists of the industrial relations literature.