Seniority Rules and the Gains from Union Organization

This paper examines the optimality of several seniority provisions which are common to U.S. union contracts. The paper focuses on the attempts by the initial union members to maximize their return from organizing the union. An overlapping generations model is used in the analysis. Seniority wage increases are found to serve as implicit initiation fees and thus serve as one means of appropriating rents from future union members. Layoff rules are shown to be optimal only when the organizers are constrained in the types of contracts they can write. Without these constraints, the optimal contract provides full insurance making layoff rules unnecessary. The paper concludes with a plausible set of constraints which organizers may face and discusses the conditions necessary for seniority layoff rules to result.

Orthonormal Polynomials on the Unit Circle and Spatially Discrete Painlev\'e II Equation

We consider the polynomials $\phi_n(z)= \kappa_n (z^n+ b_{n-1} z^{n-1}+ >...)$ orthonormal with respect to the weight $\exp(\sqrt{\lambda} (z+ 1/z)) dz/2 \pi i z$ on the unit circle in the complex plane. The leading coefficient $\kappa_n$ is found to satisfy a difference-differential (spatially discrete) equation which is further proved to approach a third order differential equation by double scaling. The third order differential equation is equivalent to the Painlev\'e II equation. The leading coefficient and second leading coefficient of $\phi_n(z)$ can be expressed asymptotically in terms of the Painlev\'e II function.Comment: 16 page

On the Political Economy of Land Value Capitalization and Local Public Sector Rent-Seeking in a Tiebout Model

In this paper we examine the political economy. of capitalization in a Tiebout model when there is a rent-seeking public bureaucracy. A new approach is suggested for testing for the influence of successful local public sector rent-seeking on local property values. We present empirical evidence showing that property values are lower in cities which pay their public sector workers significantly more than similar public sector workers earn in other cities. Finally, we discuss how the regulatory process can be used to distribute rents arising from a short-run Tiebout disequilibrium to landowners, public sector workers, and renters.

An Empirical Test of an Asymmetric Information Model of Strikes

Recent developments in the thoery of strategic bargaining demonstrate howinformational asymmetries can lead to prolonged and costly bargaining. These models can be applied to contract negotiations between unions and firms yielding an economic theory of strikes. To date, however, few empirical tests of these models have been carried out. This paper presents some evidence supporting this view of strikes. A set of predictions concerning the incidence and unconditional duration of strikes is derived from a simple bargaining model where the union is uncertain about the firm's future profitability. These predictions are then tested on a micro data set of major U.S. contract negotiations which took place from 1973 to 1977.

Proofs of Two Conjectures Related to the Thermodynamic Bethe Ansatz

We prove that the solution to a pair of nonlinear integral equations arising in the thermodynamic Bethe Ansatz can be expressed in terms of the resolvent kernel of the linear integral operator with kernel exp(-u(theta)-u(theta'))/cosh[(1/2)(theta-theta')]Comment: 16 pages, LaTeX file, no figures. Revision has minor change

The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989

It is argued in many circles that a structural change occurred in U.S. collective bargaining in the 1980s. We investigate the extent to which the hiring of replacement workers can account for this change. For a sample of over 300 major strikes since 1980, we estimate the likelihood of replacements being hired. We find that the risk of replacement declines during tight labor markets, and is lower for bargaining units with more experienced workers. We use the predicted replacement risk as an explanatory variable in a model of the union's choice between the strike and holdout threat. We find that strike usage decreases significantly as the predicted replacement risk increases. We estimate that a ban on the use of replacement workers would have increased strike incidence from 1982-1989 by 3 percentage points, a 30 percent increase.

Signatures of localization in the effective metallic regime of high mobility Si MOSFETs

Combining experimental data, numerical transport calculations, and theoretical analysis, we study the temperature-dependent resistivity of high-mobility 2D Si MOSFETs to search for signatures of weak localization induced quantum corrections in the effective metallic regime above the critical density of the so-called two-dimensional metal-insulator transition (2D MIT). The goal is to look for the effect of logarithmic insulating localization correction to the metallic temperature dependence in the 2D conductivity so as to distinguish between the 2D MIT being a true quantum phase transition versus being a finite-temperature crossover. We use the Boltzmann theory of resistivity including the temperature dependent screening effect on charged impurities in the system to fit the data. We analyze weak perpendicluar field magnetoresistance data taken in the vicinity of the transition and show that they are consistent with weak localization behavior in the strongly disordered regime $k_F\ell\gtrsim1$. Therefore we supplement the Botzmann transport theory with a logarithmic in temperature quantum weak localization correction and analyze the competition of the insulating temperature dependence of this correction with the metallic temperature dependence of the Boltzmann conductivity. Using this minimal theoretical model we find that the logarithmic insulating correction is masked by the metallic temperature dependence of the Botzmann resistivity and therefore the insulating $\log T$ behavior may be apparent only at very low temperatures which are often beyond the range of temperatures accessible experimentally. Analyzing the low-$T$ experimental Si MOSFET transport data we identify signatures of the putative insulating behavior at low temperature and density in the effective metallic phase.Comment: 10 pages,5 figures, published versio