Corrupt union leaders profit by keeping wages low, impacting worker rights.
The article explores how corrupt union leaders and firms negotiate wages, aiming to keep them close to the efficiency level. The union leader takes bribes from the firm to maintain this balance. The study shows that the unionized wage is higher than the efficiency wage, and both parties engage in a bargaining game to determine the final wage and bribe amount. This research provides insights for creating effective anti-corruption policies.