Nominal Rigidities in Wage Setting by Rational Trade Unions
AbstractMany rational wage setting schemes, such as the trade unions paradigm, are usually thought to lead to pure real rigidities. In this article, the author constructs a model where a rational trade union without any kind of money illusion sets wage schedules in an economy subject to real and monetary shocks. He makes the realistic assumption that wages can be conditioned on prices. It is found that, although the trade union has the option of fully insulating workers from nominal disturbances, it will rationally choose not to do so and, therefore, nominal rigidities will be present in the economy. Copyright 1995 by Royal Economic Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 105 (1995)
Issue (Month): 430 (May)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Adriana Cassoni, 1997. "A brief survey on the role of trade unions in labour market," Documentos de Trabajo (working papers) 0697, Department of Economics - dECON.
- Roberta Gatti & Matteo Morgandi & Rebekka Grun & Stefanie Brodmann & Diego Angel-Urdinola & Juan Manuel Moreno & Daniela Marotta & Marc Schiffbauer & Elizabeth Mata Lorenzo, 2013. "Jobs for Shared Prosperity : Time for Action in the Middle East and North Africa," World Bank Publications, The World Bank, number 13284, October.
- Ching-Chong Lai & Juin-Jen Chang, 2002. "Nominal versus real wage rigidity in a monopoly union: A synthesis," Atlantic Economic Journal, International Atlantic Economic Society, vol. 30(1), pages 61-73, March.
- Bisin, Alberto, 1998. "General Equilibrium with Endogenously Incomplete Financial Markets," Journal of Economic Theory, Elsevier, vol. 82(1), pages 19-45, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.