This paper investigates the effects on production and employment of an introduction of profit sharing in an economy initially stuck in unemployment. The economy considered is divided into many small production sectors. in each sector the wage rate is negotiated between an employers' union and a...

This paper analyses a dynamic general equilibrium macro model where consumers are divided into workers and capitalists. Goods and money markets are assumed to be competitive, whereas the wage rate is determined by negotiation between a trade union and an employer's union. Unions know the...