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Wage Setting in Democratic Labour Unions

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  • Filges, T.
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    Abstract

    In this paper, we analyse the wage setting of a democratic labour union. The union members differ with respect to their employment probabilities. The union wage only changes if the parameters of the median member change. An exogenous shock to revenue may increase the wage, even if labour demand is iso-elastic and unemployment benefits may have only a small effect on wages if the median member differs from the average. These findings are in accordance with empirical results.

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    Bibliographic Info

    Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 99-08.

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    Length: 15 pages
    Date of creation: 1999
    Date of revision:
    Handle: RePEc:fth:clmsre:99-08

    Contact details of provider:
    Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
    Phone: +45 8942 2350
    Fax: +45 8942 2365
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    Web page: http://www.cls.dk/
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    Related research

    Keywords: UTILITY ; EMPLOYMENT ; WORKERS' REPRESENTATION;

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