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Unions, Monetary Shocks and the Labour Market Cycle

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  • Fernández de Córdoba, Gonzalo
  • Vázquez Pérez, Jesús

Abstract

This paper provides a new growth model by considering strategic behaviour in the supply of labour. Workers form a labour union with the aim of manipulating wages in their own benefit. We analyse the implications on labor market dynamics at business cycle frequencies of getting away from the price-taking assumption. A calibrated monetary version of the union model does quite a reasonable job in replicating the dynamic features of labour market variables observed in post-war U.S. data.

Suggested Citation

  • Fernández de Córdoba, Gonzalo & Vázquez Pérez, Jesús, 2010. "Unions, Monetary Shocks and the Labour Market Cycle," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:6568
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    More about this item

    Keywords

    labour union; productivity versus monetary shocks; business cycles;
    All these keywords.

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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