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This book analyzes the crucial features of unionized labor markets in industrialized countries, with particular emphasis on Britain and the United States. The techniques used by economists to model unionized labor markets are carefully explained. The connection between theoretical modeling and empirical testing of the theories is also emphasized. The book is directed to undergraduate economics students studying labor economics and to masters students in economics or industrial relations, but it is also accessible to general readers with a quantitative background.

In recent years, technological change, unemployment and industrial restructuring have highlighted training and the acquisition of skills as a policy issue. Throughout the industrialized world there is widespread concern that employees are insufficiently skilled. This deficiency can have serious economic consequences, reflected in excessive unemployment, meager growth, impeded competitiveness, excessive wages, insufficient innovation, and deficient product quality. This volume, from the Centre for Economic Policy Research, provides a systematic account of all the major market failures in the...