The effects of unionization in an R&D growth model with (In)determinate equilibrium
AbstractThis paper extends an R&D-based growth model of the Rivera-Batiz and Romer-type [Quarterly Journal of Economics 106 (1991) 531] endogenous growth model by embodying a union with elastic labor to investigate the effects of unionization on employment and growth by highlighting the essence of internal conflict within the union. It is shown that an increase in the union’s bargaining power or a union which is more employment-oriented boosts employment and economic growth when the balanced growth equilibrium is determinate. On the other hand, if the union is more wage-oriented, employment and economic growth are enhanced when the balanced growth equilibrium is indeterminate.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27748.
Date of creation: 07 Nov 2010
Date of revision:
Union; Collective bargaining; R&D; Indeterminacy; Economic growth;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-BEC-2011-01-16 (Business Economics)
- NEP-DGE-2011-01-16 (Dynamic General Equilibrium)
- NEP-FDG-2011-01-16 (Financial Development & Growth)
- NEP-LAB-2011-01-16 (Labour Economics)
- NEP-SBM-2011-01-16 (Small Business Management)
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