Towards a Hierarchical Approach to Trade Union Behaviour
AbstractThe main starting point of this paper is the idea that trade unions do not only care about real wage level but also about a reference or aspiration wage level. After citing a number of empirical works, the paper argues that the attainment of the reference wage is a priority for the union. This implies that there is a hierarchical character in union objectives. A two-step union utility function is suggested in order to capture the change in priority once the prime objective (the reference wage level) was reached. The analysis is conducted in an efficient bargain framework, and shows that employment-wage combinations come into the picture only when the reference wage is reached. In a unionized economy, this implies that substantial increases in employment will take place only after the union reference wage has been met.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15597.
Date of creation: Mar 1995
Date of revision:
Publication status: Published in Economic Notes No 1.25(1996): pp. 47-56
Wages; Trade Unions; Trade Union Objectives;
Find related papers by JEL classification:
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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.:
- Stavros A. Drakopoulos & John D.F. Skåtun, 1997. "Altruism, union utility and outsiders," Journal of Economic Studies, Emerald Group Publishing, vol. 24(6), pages 392-401, October.
- Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From The Swedish Wood Industry," Papers 419, Stockholm - International Economic Studies.
- Clark, Andrew E. & Oswald, Andrew J., 1994.
"Satisfaction and comparison income,"
CEPREMAP Working Papers (Couverture Orange)
- Robert J. Flanagan, 1976. "Wage Interdependence in Unionized Labor Markets," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(3), pages 635-682.
- Robert A. Hart & Thomas Moutos, 1990.
"Efficient Bargains in the Context of Recent Labour Market Experience and Policy,"
Upjohn Working Papers and Journal Articles
90-03, W.E. Upjohn Institute for Employment Research.
- Hart, Robert A. & Moutos, Thomas, 1991. "Efficient bargains in the context of recent labour market experience and policy," European Journal of Political Economy, Elsevier, vol. 7(2), pages 169-181, July.
- Robert A Hart & Thomas Moutos, 1990. "Efficient Bargains in the Context of Recent Labour Market Experience and Policy," Working Papers Series 90/7, University of Stirling, Division of Economics.
- Jacoby, Sanford M & Mitchell, Daniel J B, 1990. "Sticky Stories: Economic Explanations of Employment and Wage Rigidity," American Economic Review, American Economic Association, vol. 80(2), pages 33-37, May.
- Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-45, June.
- Drakopoulos, S A, 1994. " Hierarchical Choice in Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 8(2), pages 133-53, June.
- Jones, Stephen R. G. & McKenna, C. J., 1989. "The effect of outsiders on union contracts," European Economic Review, Elsevier, vol. 33(8), pages 1567-1573, October.
- Gylfason, Thorvaldur & Lindbeck, Assar, 1984. "Competing wage claims, cost inflation, and capacity utilization," European Economic Review, Elsevier, vol. 24(1), pages 1-21.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.