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Journal of Labor Economics Vol. 12 No. 2 1994

Union Attitudes to Labor-Saving Innovation: When are Unions Luddites

Steve Dowrick; Barbara J. Spencer

Abstract

The response of union utility to labor-saving innovation is analyzed within a framework of oligopolistic competition in the product market, taking account of wage bargaining under several alternative structures of industrial relations. Conditions are established under which wages and employment will rise or fall in response to innovation. Union opposition tends to occur when union preferences are weighted in favor of jobs and labor demand is perceived to be inelastic. Thus opposition is more likely with industry- or craft-based union organization in noncompetitive industries and is less likely with enterprise unionism in competitive industries.

DOI
10.1086/298359
Volume
12
Issue
2
Pages
316-344
Language
en
Sources
openalex crossref

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