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The Effects of Unionization in an R&D Growth Model with (In)determinate Equilibrium

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  • Chung-Hui Lai

    (Department of Accounting, Feng Chia University, Taiwan)

  • Chen-Sheng Yang

    (Department of International Business, Central Taiwan University of Science and Technology, Taiwan)

Abstract

This paper extends an R&D-based growth model of the Rivera-Batiz and Romer-type [Quarterly Journal of Economics 106 (1991) 531] endogenous growth model by embodying a union with elastic labor to investigate the effects of unionization on employment and growth by highlighting the essence of internal conflict within the union. It is shown that an increase in the union’s bargaining power or a union which is more employment-oriented boosts employment and economic growth when the balanced growth equilibrium is determinate. On the other hand, if the union is more wage-oriented, employment and economic growth are enhanced when the balanced growth equilibrium is indeterminate.

Suggested Citation

  • Chung-Hui Lai & Chen-Sheng Yang, 2018. "The Effects of Unionization in an R&D Growth Model with (In)determinate Equilibrium," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 14(2), pages 107-132, August.
    • Handle: RePEc:jec:journl:v:14:y:2018:i:2:p:107-132
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    References listed on IDEAS

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    More about this item

    Keywords

    union; collective bargaining; R&D; indeterminacy; endogenous growth;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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