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The Politics of Wage Decisions. Union Cooperation or Harassment

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Author Info
Jorge M. Streb

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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.

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File URL: http://www.cema.edu.ar/publicaciones/download/documentos/103.pdf
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Publisher Info
Paper provided by Universidad del CEMA in its series CEMA Working Papers: Serie Documentos de Trabajo. with number 103.

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Date of creation: May 1995
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Handle: RePEc:cem:doctra:103

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Related research
Keywords: inflationary games political trade union

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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