Showing 1 - 10 of 338
In this paper we study the relationship between labour market institutions and monetary policy. We use a simple macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and nominal and real wage rigidity) and social preferences...
Persistent link: https://www.econbiz.de/10005124134
excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how … configurations of technology, inequality and redistributive policy are feasible in the long run, when all three are endogenous. I … show in particular how the diffusion of technology leads to the ‘exporting’ of inequality across borders; and how this, in …
Persistent link: https://www.econbiz.de/10005661547
Theory predicts that when economies become more integrated through the removal of tariff and other barriers to trade, resulting in an increase in competition in product markets, there should be effects on wage and employment outcomes in labour markets, particularly those in which unions are...
Persistent link: https://www.econbiz.de/10005666859
We argue that inequality and rapid deunionization are related, and that skill-biased technical change has been an … important factor in deunionization as well as in the rise in inequality. Skill-biased technical change causes deunionization … support of unions. Our approach implies that although deunionization is not the underlying cause of the increase in inequality …
Persistent link: https://www.econbiz.de/10005791562
In this paper we study the endogenous determination of minimum wage employing a political-economic game-theoretic approach. A major objective of the paper is to clarify the crucial role of the strength of the workers' union and of political culture on the determination of the minimum wage. In...
Persistent link: https://www.econbiz.de/10005497998
This paper presents a simple search and bargaining economy in which firms use concave production. Because a firm and worker negotiate over the worker's marginal productivity, the firm's wage is a function of its labour force. Reacting to this wage function, firms choose an excessively large and...
Persistent link: https://www.econbiz.de/10005656122
International product market integration enhances both export possibilities through easier access to foreign markets, but also the import threat arising from foreign firms penetrating into the domestic market. These mechanisms affect wage formation and employment creation through many channels...
Persistent link: https://www.econbiz.de/10005662415
and inequality. The reason is that product market integration enhances export possibilities through easier access to …
Persistent link: https://www.econbiz.de/10005123528
Cross-country evidence on inflation and inequality suggests that they are positively correlated. I explore the …
Persistent link: https://www.econbiz.de/10005792380
Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important … negative relation between inequality and growth. After a comprehensive sensitivity analysis, we conclude that our findings are …
Persistent link: https://www.econbiz.de/10005124104