| Sumario: | We model the politics of wage and employment determination for unionized public-sector workers who can strike. If the employment level affects the identity of the decisive voter in budget referenda and other elections, then unions may be able to increase wages by increasing employment. We identify conditions under which public sector unionization will lead to increased wages and employment; we also show that a majority of voters may favor unionization. Reprinted by permission of Western Economic International 7400 Center Ave., Ste. 109, Huntington Beach, CA 92647-3039, USA. Ph. 1-714-898-3222, Fax 1-714-891-6715. E-mail [|Wu]info @weainternational.org[|WU] [|Wu]http://www.weainternational.org.[|WU]
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