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Paying to queue: A theory of locational differences in nonunion wages

Publication ,  Journal Article
Ahn, T; Arcidiacono, P
Published in: Journal of Urban Economics
January 1, 2004

Traditional theories of the effect unions have on nonunion wages are difficult to reconcile with firm and worker mobility. We show how differences in nonunion wages can persist in a two-city search model. Nonunion wage differences across cities are driven by transition rates into the union sector. Should union queues form in the nonunion sector, union power decreases nonunion wages as workers are willing to take lower wages to line up for union jobs. However, if queues are formed in the unemployed sector, union power increases nonunion wages as nonunion firms pay premiums to induce workers to leave the queue. © 2004 Elsevier Inc. All rights reserved.

Duke Scholars

Published In

Journal of Urban Economics

DOI

ISSN

0094-1190

Publication Date

January 1, 2004

Volume

55

Issue

3

Start / End Page

565 / 579

Related Subject Headings

  • Economics
  • 1402 Applied Economics
  • 1205 Urban and Regional Planning
 

Citation

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Ahn, T., & Arcidiacono, P. (2004). Paying to queue: A theory of locational differences in nonunion wages. Journal of Urban Economics, 55(3), 565–579. https://doi.org/10.1016/j.jue.2003.11.005
Ahn, T., and P. Arcidiacono. “Paying to queue: A theory of locational differences in nonunion wages.” Journal of Urban Economics 55, no. 3 (January 1, 2004): 565–79. https://doi.org/10.1016/j.jue.2003.11.005.
Ahn T, Arcidiacono P. Paying to queue: A theory of locational differences in nonunion wages. Journal of Urban Economics. 2004 Jan 1;55(3):565–79.
Ahn, T., and P. Arcidiacono. “Paying to queue: A theory of locational differences in nonunion wages.” Journal of Urban Economics, vol. 55, no. 3, Jan. 2004, pp. 565–79. Scopus, doi:10.1016/j.jue.2003.11.005.
Ahn T, Arcidiacono P. Paying to queue: A theory of locational differences in nonunion wages. Journal of Urban Economics. 2004 Jan 1;55(3):565–579.
Journal cover image

Published In

Journal of Urban Economics

DOI

ISSN

0094-1190

Publication Date

January 1, 2004

Volume

55

Issue

3

Start / End Page

565 / 579

Related Subject Headings

  • Economics
  • 1402 Applied Economics
  • 1205 Urban and Regional Planning