Centralized Wage Setting, Wage Drift and Stabilization Policies under Trade Unionism
AbstractThis paper analyzes union behavior in a model w ith uncertainty aboutaggregate labor demand. When uncertainty is resolved, the labor market may be in excess demand or excess supply at the preset contractual wage. Wage drift occurs if excess demand is realized and the union's wage demand takes this into account. Stabilization policyinvolves government hirings in go od times and firings in bad ones. Public employment expansion in slumps increase s the union's wage demand. More surprisingly, a contraction of public employment in goodtimes will also produce a higher contractual wage. Copyright 1986 by Royal Economic Society.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 147.
Length: 34 pages
Date of creation: Sep 1985
Date of revision:
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Trade unions; wage setting; wage drift; uncertainty;
Other versions of this item:
- Holmlund, Bertil, 1986. "Centralized Wage Setting, Wage Drift and Stabilization Policies under Trade Unionism," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 243-58, July.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pencavel, John, 1985. " Wages and Employment under Trade Unionism: Microeconomic Models and Macroeconomic Applications," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 197-225.
- Calmfors, Lars & Horn, Henrik, 1985. " Classical Unemployment, Accommodation Policies and Adjustment of Real Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 234-61.
- Oswald, Andrew J., 1982. "Uncertainty and the trade union," Economics Letters, Elsevier, vol. 9(1), pages 105-111.
- Ohlsson, H., 1990.
"Job Creation Measures As Activist Fiscal Policy: An Empirical Analysis Of Policy Reaction Behavior,"
1990d, Uppsala - Working Paper Series.
- Ohlsson, Henry, 1992. "Job creation measures as activist fiscal policy -- an empirical analysis of policy reaction behavior," European Journal of Political Economy, Elsevier, vol. 8(2), pages 269-280, May.
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