This paper examines the effect of monopolistic labour unions' behaviour on governments' incentives to undertake labour … market reform, inside and outside a symmetric and an asymmetric monetary union (MU). Incentives for reform are increased …

. The closer to zero this parameter, (i) the more firms adjust on the intensive margin, reducing employment volatility, (ii …) the lower the effective workers' bargaining power for wages and (iii) the more important the hourly wage in the marginal …

. The closer to zero this parameter, (i) the more firms adjust on the intensive margin, reducing employment volatility, (ii …) the lower the effective workers' bargaining power for wages and (iii) the more important the hourly wage in the marginal …

's assumption that wage bargainers are influenced by relative money wages rather than relative real wages. In Taylor's model money … that wage bargainers are influenced by relative real wages, which we consider somewhat more plausible, has some interesting …

's assumption that wage bargainers are influenced by relative money wages rather than relative real wages. In Taylor's model money … that wage bargainers are influenced by relative real wages, which we consider somewhat more plausible, has some interesting …