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The answer to the question in the title of course depends on how we define economic performance. In an overlapping generations model we show that trade unions do worsen economic performance in the sense that we get uemployment, but it is quite likely that trade unions give rise to a higher...
Persistent link: https://www.econbiz.de/10014075369
A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers' marginal propensity to save exceeds the one of capitalists. We make this point in an...
Persistent link: https://www.econbiz.de/10011399719
Focusing on the cost-reducing motive behind the use of temporary agency employment, this paper aims at providing a better theoretical understanding of the effects of temporary agency work on the wage-setting process, trade unions' rents, firms' profits and employment. It is shown that trade...
Persistent link: https://www.econbiz.de/10010502782
find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in … between the growth and unemployment rates results. …
Persistent link: https://www.econbiz.de/10010457726
security system in an economy with unemployment caused by trade unions. Using a simple two-period overlapping generations …
Persistent link: https://www.econbiz.de/10011592074
This paper investigates how demographic change affects the financial sustainability of a defined benefit pay-as-you-go social security system in an environment with collective bargaining on the labor market. Temporary equilibrium analysis shows that the contribution rate decreases, if the...
Persistent link: https://www.econbiz.de/10011993820
Focusing on the cost-reducing motive behind the use of temporary agency employment, this paper aims at providing a better theoretical understanding of the effects of temporary agency work on the wage-setting process, trade unions' rents, firms' profits and employment. It is shown that trade...
Persistent link: https://www.econbiz.de/10010472489
and efficient bargaining - to the existence of a budget constraint pending on the financing of the unemployment benefit …, implications of union having control over membership, and, hence, of unemployment insurance coverage, are also considered, as well … as of different fiscal scenarios on the form of financing the unemployment benefit bill. …
Persistent link: https://www.econbiz.de/10011512978
Revised May 2016. We analyze a labor market with search and matching frictions in which wage setting is controlled by a monopoly union. Frictions render existing matches a form of firm-specific capital that is subject to a hold-up problem in a unionized labor market. We study how this hold-up...
Persistent link: https://www.econbiz.de/10012969869
causes deficient aggregate demand and thereby unemployment in the presence of nominal wage stickiness attributable to union … wage setting. In this long-run stagnation, generous unemployment benefits reduce unemployment. Moreover, paradoxically …, unemployment declines if labor unions give more weight to nominal wage gains compared with employment increases …
Persistent link: https://www.econbiz.de/10012989163