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Employment Variation and Wage Rigidity: A Comparison of Union and Non-Union Plants

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  • Leonard, Jonathan S.

Abstract

The unionized sector is often thought of as the dominant focus of wage rigidity and hence employment instability in Keynesian models that attribute unemployment to rigid wages. Where the price mechanism is frozen, quantity changes are amplified. This paper compares intertemporal employment variability during the 1970's at union and non-union plants, and finds no greater cyclical or residual employment variation in union than in non-union plants.

Suggested Citation

  • Leonard, Jonathan S., 1987. "Employment Variation and Wage Rigidity: A Comparison of Union and Non-Union Plants," Institute for Research on Labor and Employment, Working Paper Series qt1qn6g5bc, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt1qn6g5bc
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    Cited by:

    1. Mark Bils, 1990. "Wage and Employment Patterns in Long-Term Contracts When Labor Is Quasi-Fixed," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 187-236, National Bureau of Economic Research, Inc.
    2. Blanchflower, D. & Millward, N. & Oswald, A., 1989. "Unionization And Employment Behaviour," Papers 339, London School of Economics - Centre for Labour Economics.
    3. Belloc, Filippo & D’Antoni, Massimo, 2020. "The Elusive Effect of Employment Protection on Labor Turnover," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 11-25.

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