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Wage Interdependence through Decentralized Bargaining

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  • de la Croix, David

Abstract

The idea that sector-specific unions are influenced by the wages obtained by other unions has mainly been used to support the empirical observation that wages are highly correlated among industries. The sources of wage interdependence can mainly be found in unions' preferences, in the nature of technology and in price and demand determination. The presence of externalities and of strategic complementarity among unions leads to suboptimal equilibria, which generates non-desired inflation, unemployment and possibly also trade balance deficit. This enforces the idea that part of current unemployment can be eliminated by improving the cooperation between social actors. Copyright 1994 by Blackwell Publishers Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 8 (1994)
Issue (Month): 4 (December)
Pages: 371-403

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Handle: RePEc:bla:jecsur:v:8:y:1994:i:4:p:371-403

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804

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Cited by:
  1. Drakopoulos, Stavros A., 2008. "The Concept Of Comparison Income: An Historical Perspective," MPRA Paper 8713, University Library of Munich, Germany.
  2. Thomas Grandner, 1998. "Market Shares of Price Setting Firms and Trade Unions," Department of Economics Working Papers wuwp061, Vienna University of Economics, Department of Economics.
  3. Drakopoulos, Stavros A., 2007. "Comparison Wage in Trade Union Decision Making," MPRA Paper 46287, University Library of Munich, Germany.
  4. Thomas Grandner, 1996. "Is Wage-Leadership an Instrument to Coordinate Union's Wage-Policy? The Case of Imperfect Product Markets," Department of Economics Working Papers wuwp042, Vienna University of Economics, Department of Economics.
  5. Drakopoulos, Stavros A. & Katselidis, Ioannis, 2012. "The Development of Trade Union theory and Mainstream Economic Methodology," MPRA Paper 39239, University Library of Munich, Germany.

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