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Growth Externalities, Unions, and Long-term Wage Accords

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  • Zagler, M.

Abstract

This paper presents an innovation driven endogenous growth model, where firms and unions bargain over wages. We find that the degree of centralization of the bargaining structure plays a crucial rule for economic performance. Central bargaining, which incorporates the leapfrogging externality incorporated in firm-level bargaining, will yield lower rates of unemployment for a given rate of economic growth.

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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number eco2000/18.

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Length: 22 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:eui:euiwps:eco2000/18

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Keywords: UNEMPLOYMENT ; WAGES ; LABOUR;

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