A common defnition of a labor union is that it is an association of workers who
bargain collectively with their employer regarding the terms and conditions of
employment. Economic analysis of labor unions falls largely into four related
categories: 1) unions as maximizing agents, 2) dispute resolution: strikes and
arbitration, 3) the effect of unions on wages, and 4) the determination of union
membership. This essay is organized around discussions of these topics.