@article{Sanner2006, author = {Sanner, Helge}, title = {Imperfect goods and labor markets, and the union wage gap}, doi = {10.1007/s00148-005-0010-6}, year = {2006}, abstract = {Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers who are covered by collective agreements and others who are not. This study aims at providing a model framework that is amenable to an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called "union wage gap" is largely determined by the degree of centralization of the bargains and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods}, language = {en} }