To reduce the level of tax evasion, a shift of taxation away from income tax and towards a consumption tax has been proposed in Australia. This paper shows that for such shift to maintain revenue but not induce trade unions to raise their wage demand, it is necessary that the income tax...

In this paper, the following four models of wage determination by trade unions, namely simple monopoly, wage-bargaining (or "right to manage"), efficient bargains, and insider-dominated, are placed within a single framework. It is shown that the pattern of wage behavior is the same in each of...

The recognition that trade unions are more likely to be concerned with the level of post-tax real wages of their members, rather than simply the gross wage, has led to a great deal of debate concerning the use of tax policy to affect the supply side of the economy in addition to the more...

A macroeconomic model is developed in which the psychological concept of loss aversion is incorporated into workers' preferences. The impact of monetary policy in the presence of loss aversion depends on the specification of the reference wage. The plausible specification that a worker's...

This paper analyzes a trade union dominated by a sub-group of employed insiders who enjoy secure employment. From the analysis the bargained wage is shown to be positively related to the union power parameter and lay-off pay and negatively related to the degree of risk aversion of the employed...

This paper reviews the measurement of equilibrium unemployment in Australia using the Phillips curve. To provide a theoretical framework through which these measurement exercises can be understood, the theory of equilibrium unemployment based on wage bargaining is also described and reviewed....