The prevalence of labor unions have declined post-WWII, and this paper examines whether globalization is a contributing … distributional effects of globalization and for the future of organized labor. …

We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …