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Wage Bargaining and Unemployment Persistence

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Author Info
Blanchard, Olivier Jean

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Abstract

This paper looks at models of unemployment which make two central assumptions. The first is that wages are bargained between firms and employed workers, and that unemployment affects the outcome only to the extent that it affects the labor market prospects of either employed workers or of firms. The second is that the duration of unemployment affects either the search behavior or the skills of the unemployed, and/or the perceptions of firms of such skills. It argues that such models may explain not only the evolution of European unemployment over the last two decades--an evolution which triggered their development--but many of the cyclical features of labor markets in general. Copyright 1991 by Ohio State University Press.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 23 (1991)
Issue (Month): 3 (August)
Pages: 277-92
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Handle: RePEc:mcb:jmoncb:v:23:y:1991:i:3:p:277-92

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Christofides, Louis N & Oswald, Andrew J, 1992. "Real Wage Determination and Rent-Sharing in Collective Bargaining Agreements," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 985-1002, August. [Downloadable!] (restricted)
    Other versions:
  2. Alan B. Krueger & Lawrence H. Summers, 1987. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Blanchard, Olivier Jean & Diamond, Peter A, 1994. "Ranking, Unemployment Duration, and Wages," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 417-34, July. [Downloadable!] (restricted)
    Other versions:
  4. repec:fth:harver:1515 is not listed on IDEAS
  5. Diamond, Peter A, 1982. "Wage Determination and Efficiency in Search Equilibrium," Review of Economic Studies, Blackwell Publishing, vol. 49(2), pages 217-27, April. [Downloadable!] (restricted)
  6. Dickens, William T, et al, 1989. "Employee Crime and the Monitoring Puzzle," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 331-47, July. [Downloadable!] (restricted)
  7. Olivier Jean Blanchard & Peter A. Diamond, 1991. "The Aggregate Matching Function," NBER Working Papers 3175, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Nickell, Stephen J, 1990. "Unemployment: A Survey," Economic Journal, Royal Economic Society, vol. 100(401), pages 391-439, June. [Downloadable!] (restricted)
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  1. Abbring, J.H. & Berg, G.J. van den & Ours, J.C. van, 1999. "The anatomy of unemployment dynamics," Discussion Paper 81, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Anders Forslund & Nils Gottfries & Andreas Westermark, 2006. "Real and Nominal Wage Adjustment in Open Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  3. Salemi, Michael K, 1999. "Estimating the Natural Rate of Unemployment and Testing the Natural Rate Hypothesis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 1-25, Jan.-Feb.. [Downloadable!]
  4. Jorge Anfdrés Tamayo, 2008. "La tasa natural de desempleo en Colombia y sus determinantes," BORRADORES DE ECONOMIA 004545, BANCO DE LA REPÚBLICA. [Downloadable!]
  5. Eriksson, Stefan & Gottfries, Nils, 2000. "Ranking of Job Applicants, On-the-job Search and Persistent Unemployment," Working Paper Series 2000:3, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
  6. Michael K. Salemi, 2007. "Long-run and Cyclic Movements in the Unemployment Rate in Hong Kong: A Dynamic, General Equilibrium Approach," Working Papers 192007, Hong Kong Institute for Monetary Research. [Downloadable!]
  7. Adam S. Posen & Daniel Popov Gould, 2006. "Has EMU Had Any Impact on the Degree of Wage Restraint?," Peterson Institute Working Paper Series WP06-06, Peterson Institute for International Economics. [Downloadable!]
    Other versions:
  8. Manfred Jäger, 2000. "Der Arbeitsmarkt in makroökonometrischen Modellen," IWH Discussion Papers 114, Halle Institute for Economic Research. [Downloadable!]
  9. Michael Dobbie, 2004. "Hysteresis and Insider-Outside Theory - A Literature Review," Research Papers 0408, Macquarie University, Department of Economics. [Downloadable!]
  10. Blanchard, Olivier & Katz, Lawrence F, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter. [Downloadable!] (restricted)
    Other versions:
  11. Javier J. Pérez & Jesús Rodríguez López & Carlos Usabiaga, 2002. "Análisis Dinámico de la Relación entre Ciclo Económico y Ciclo del Desempleo en Andalucía en Comparación con el Resto de España," Economic Working Papers at Centro de Estudios Andaluces E2002/07, Centro de Estudios Andaluces. [Downloadable!]
  12. Miller, J., 1995. "The effects of labour market policies when there is a loss of skill during unemployment," Discussion Paper 120, Tilburg University, Center for Economic Research. [Downloadable!]
  13. Anssi Rantala, 2004. "Labour market flexibility and policy coordination in a monetary union," Macroeconomics 0405001, EconWPA. [Downloadable!]
  14. Jaap H. Abbring & Gerard J. van den Berg & Jan C. van Ours, 1997. "Business Cycles and Compositional Variation in U.S. Unemployment," Tinbergen Institute Discussion Papers 97-050/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  15. Cockx, Bart, 1999. "The Design of Active Labour Market Policies. What Matters and What Doesn't ?," Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper 1999035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  16. Rantala, Anssi, 2003. "Labour market flexibility and policy coordination in a monetary union," Research Discussion Papers 11/2003, Bank of Finland. [Downloadable!]
  17. Elías Albagli & Pablo García & Jorge Restrepo, 2004. "Labor Market Rigidity and Structural Shocks: An Open-Economy Approach for International Comparisons," Working Papers Central Bank of Chile 263, Central Bank of Chile. [Downloadable!]
  18. Ines Murillo & Fernando Núñez & Carlos Usabiaga, 2005. "Differentials and persistence in unemployment - an analysis of the Spanish regions with the highest unemployment rates," ERSA conference papers ersa05p278, European Regional Science Association. [Downloadable!]
  19. Roeger, Werner & Wijkander, Hans, 2000. "Unemployment in Europe: Swimming against the Tide of Skill-Biased Technical Progress without Relative Wage Adjustment," Research Papers in Economics 2000:9, Stockholm University, Department of Economics. [Downloadable!]
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