Wage Formation and the Persistence of Unemployment
AbstractThe basic idea is that employed and unemployed workers have diverging interest s and that wage decisions tend to favor the interest of those employe d. This is shown to imply that unemployment, once created, tends to p ersist after wage contracts have been negotiated anew. The reason is that the lower the number of workers employed yesterday, the fewer th e number of jobs required today in order to ensure the previously emp loyed workers a high probability of employment. Unions, acting in th e interest of the employed workers, may therefore raise wages so that unemployment persists. Copyright 1987 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): 97 (1987)
Issue (Month): 388 (December)
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.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
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 references are entirely missing, you can add them using this form.