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Wage-Moderating Effects of Corporatism: Decentralized versus Centralized Wage Setting in a Union, Firm, Government Context

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  • Mulder, C B
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    Abstract

    Corporatism is often claimed to exert a moderating influence on the real wage gap, the difference between the actual wage rate and the full employment wage rate. Corporatist countries should, therefore, show a lesser degree of unemployment. This paper explores and models one of the reasons why these results might be observed. An important reason for wage moderation could be the endogeneity of the wage tax rate for a centralized or encompassing trade union. Copyright 1993 by Blackwell Publishers Ltd and The Victoria University of Manchester

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    Bibliographic Info

    Article provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.

    Volume (Year): 61 (1993)
    Issue (Month): 3 (September)
    Pages: 287-301

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    Handle: RePEc:bla:manch2:v:61:y:1993:i:3:p:287-301

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    Cited by:
    1. Burda, Michael C., 1997. "Corporatism, labor unions and the safety net," European Economic Review, Elsevier, vol. 41(3-5), pages 635-646, April.
    2. Céline Choulet, 2004. "Public employment and labour market performance : centralization wage setting effects," Cahiers de la Maison des Sciences Economiques v04036, Université Panthéon-Sorbonne (Paris 1).

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