A DYNAMIC-MODEL OF UNION MEMBERSHIP AND EMPLOYMENT

This paper incorporates the ideas that a union maximizes an intertempo ral objective function, that it recognizes some link between present w age and employment levels and future membership, and that it has an in terest in the level of membership attained. We model membership decisi ons with stochastic demand and a differential layoff rate for union an d non-union workers. Membership dynamics are 'behavioural' in that mem bership increases when the utility of being a member exceeds the utili ty of not being a member. The model permits a variety of possible rela tionships between employment and membership in the adjustment to stead y state.