Lingens, Joerg (2007) Unions, wage setting, and economic growth. ECONOMIC MODELLING, 24 (1). pp. 167-188. ISSN 0264-9993,
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In this paper we analyse the growth effects of union wage bargaining within an expanding product variety growth model. We identify two channels through which unionisation will affect the rate of growth. Firstly, unions capture monopoly profits and thus give rise to a hold-up problem. Finns have less incentive to invest in research. This ceteris paribus dampens the growth rate. Secondly, unionisation changes the "de facto" skill abundance of the economy. This results in a resource reallocation a la Rybczynski, which may be growth enhancing. We derive the conditions for the dominance of either effects and demonstrate bow these will change, with the institutional setting of the bargain. (c) 2006 Elsevier B.V. All rights reserved.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | LABOR-MARKET; PRODUCTIVITY GROWTH; LONG-RUN; UNEMPLOYMENT; MODEL; INVESTMENT; INNOVATION; CONTRACTS; INDUSTRY; SCALE; Union Wage Bargaining; growth; Rybczynski effect |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Internationale und Monetäre Ökonomik (Prof. Dr. Jürgen Jerger) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 12 Jan 2021 06:50 |
| Last Modified: | 12 Jan 2021 06:50 |
| URI: | https://pred.uni-regensburg.de/id/eprint/33401 |
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