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The Politics of Wage Decisions. Union Cooperation or Harassment

Author

Listed:
  • Jorge M. Streb

Abstract

The paper ask why trade unions' attitudes to stabilization policy can be colored by political considerations, as suggested for example by Argentina's history of bitter divisions over Peronism. Wage decisions are considered as part of a game between the government and trade unions, where income distribution can be altered by political parties and a successful stabilization program increases the chances the incumbent will be reelected. The main result is that trade unions may cooperate with a friendly government, and harass a non-friendly government, in a polarized political climate.

Suggested Citation

  • Jorge M. Streb, 1995. "The Politics of Wage Decisions. Union Cooperation or Harassment," CEMA Working Papers: Serie Documentos de Trabajo. 103, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:103
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    File URL: https://www.ucema.edu.ar/publicaciones/download/documentos/103.pdf
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    More about this item

    Keywords

    inflationary games; political trade union;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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