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The Rise and Fall of Unionised Labour Markets: A Political Economy Approach

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  • Woojin Lee
  • John E. Roemer

Abstract

Studying a model where trade unions interact with endogenously formed partisan political parties, we explain changing political preferences for and against the unionised labour market regime. We focus on the changes in coalition formation between unskilled and moderately skilled workers, which in turn depend on inequality among workers. When inequality is either very low or very high, moderately skilled workers form a political coalition with unskilled workers to support a unionised labour market regime. In other cases, the economic interest of the moderately skilled workers is more in line with that of highly skilled workers and capital owners to support a competitive labour market regime. Copyright 2005 Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 115 (2005)
Issue (Month): 500 (01)
Pages: 28-67

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Handle: RePEc:ecj:econjl:v:115:y:2005:i:500:p:28-67

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Cited by:
  1. Indraneel Dasgupta, . "‘Living’ wage, class conflict and ethnic strife," Discussion Papers 08/08, University of Nottingham, CREDIT.
  2. Humberto Llavador & Angel Solano-García, 2010. "Immigration Policy with Partisan Parties," Working Papers 499, Barcelona Graduate School of Economics.
  3. John E. Roemer, 2004. "Distribution and Politics: A Brief History and Prospect," Cowles Foundation Discussion Papers 1487, Cowles Foundation for Research in Economics, Yale University.
  4. Jaitman, Laura, 2013. "The causal effect of compulsory voting laws on turnout: Does skill matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 79-93.
  5. Philippe, DE DONDER & Jean, HINDRIKS, 2006. "Equilibrium Social Insurance with Policy-Motivated Parties," Discussion Papers (ECON - Département des Sciences Economiques) 2006018, Université catholique de Louvain, Département des Sciences Economiques.
  6. Campante, Filipe, 2007. "Redistribution in a Model of Voting and Campaign Contributions," Working Paper Series rwp07-045, Harvard University, John F. Kennedy School of Government.
  7. repec:gra:wpaper:13/06 is not listed on IDEAS
  8. Vincent Anesi & Philippe De Donder, 2013. "A coalitional theory of unemployment insurance and employment protection," Economic Theory, Springer, vol. 52(3), pages 941-977, April.
  9. Anesi, Vincent & De Donder, Philippe, 2009. "A Positive Theory of Unemployment Insurance and Employment Protection," CEPR Discussion Papers 7333, C.E.P.R. Discussion Papers.
  10. Xiujian Chen & Shu Lin & W. Robert Reed, 2005. "Another Look At What To Do With Time-Series Cross-Section Data," Econometrics 0506004, EconWPA.

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