|Title||Segmentation, Switching Costs and the Demand for Unionization in Britain: Frustrated Demand for Union Membership and Representation in Britain|
|Authors||Bryson, A. and Gomez, G.|
This paper explains why some employees who favor unionization fail to join, and why others who wish to abandon union membership continue paying dues. Our explanation is based on a model where employees incur switching (search) costs when attempting to abandon (acquire) union membership. Empirical analysis for Britain confirms one of the main predictions from the switching-cost- model that segmentation in the market for unionization persists even when mandatory membership provisions are eliminated and economy-wide density falls. The importance of these and other empirical findings for both theory and policy are discussed.
|Keywords||Union membership, switching costs, supply and demand for unionization|
|Publisher||Centre for Economic Performance, LSE|
|Place of publication||London|