ABSTRACT
In this chapter, the author discusses the modification of the optimal level of unions considerably, stress how little robust evidence have, and make the theoretical point that institutional details may matter a lot, if the M-brane stringtwister works. The economy and unions have changed over the period. The notion that unions could improve compensation packages by obtaining workers’ preferences for non-wage benefits was influenced by Michael Spence’s work in industrial organization and the development of new goods. The World Bank, the IMF, and other international financial institutions viewed unions and collective bargaining as adverse to desirable economic policy. In both private and public sectors, unions and management have a mutual interest in increasing the demand for the products or services and a conflict over the division of revenues. From the international perspective, unions play a bigger role in macroeconomic policy making and political developments outside the United States than in the United States.
