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Trade Unions and the Choice of Capital Stock

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Author Info
Simon Anderson
Michael Devereux

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Abstract

This paper considers the interaction between a firm and trade union in determining employment, wages and capital stock. We take the monopoly trade union model of Oswald (1982), where the union sets the wage, and add the firms choice of capital stock. The standard predictions of the union literature are highly dependent on the degree of strategic dominance of the union vis a vis the firm.

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Paper provided by Queen's University, Department of Economics in its series Working Papers with number 600.

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Length: 33 pages
Date of creation: 1985
Date of revision:
Handle: RePEc:qed:wpaper:600

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  1. Fabrizio Mattesini & Lorenza Rossi, 2007. "Productivity shocks and Optimal Monetary Policy in a Unionized Labor Market Economy," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0072, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE). [Downloadable!]
    Other versions:
  2. Heshmati, Almas & Haouas, Ilham, 2003. "The Effects of Union Wage-Settings on Firms' Production Factor Decisions," IZA Discussion Papers 689, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Claus Hansen, 1999. "Long-run impact of increased wage pressure," Journal of Economics, Springer, vol. 69(2), pages 141-157, June. [Downloadable!] (restricted)
  4. Clemens Fuest & Bernd Huber, 1998. "Why Do Countries Subsidize Investment and Not Employment?," NBER Working Papers 6685, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Rossi, Lorenza & Mattesini, Fabrizio, 2007. "Productivity Shock and Optimal Monetary Policy in a Unionized Labor Market. Forthcoming: The Manchester School," MPRA Paper 8414, University Library of Munich, Germany, revised 2008. [Downloadable!]
  6. Jean-François Fagnart & Marc Germain, 1997. "Investment and technological choice in a right-to-manage model," Journal of Economics, Springer, vol. 66(3), pages 223-247, October. [Downloadable!] (restricted)
  7. Marco Maffezzoli, 2001. "Non-Walrasian Labor Markets and Real Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(4), pages 860-892, October. [Downloadable!] (restricted)
    Other versions:
  8. Natasha Miaouli, 2001. "Employment and Capital Accumulation in Unionised Labour Markets: evidence from five south-European countries," International Review of Applied Economics, Taylor and Francis Journals, vol. 15(1), pages 5-29, January. [Downloadable!] (restricted)
  9. Erkki Koskela & Mikko Puhakka, 2006. "Stability and Dynamics in an Overlapping Generations Economy under Flexible Wage Negotiation and Capital Accumulation," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  10. John Kennan, 2001. "Uniqueness of Positive Fixed Points for Increasing Concave Functions on Rn: An Elementary Result," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(4), pages 893-899, October. [Downloadable!] (restricted)
  11. Rossi, Lorenza & Mattesini, Fabrizio, 2007. "Optimal Monetary Policy in a Dual Labor Market Economy," MPRA Paper 2468, University Library of Munich, Germany, revised 15 Mar 2007. [Downloadable!]
  12. Erkki Koskela & Mikko Puhakka, 2007. "Stability and Dynamics in an Overlapping Generations Economy with Flexible Wage Negotiations," IZA Discussion Papers 3246, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Mattesini Fabrizio & Rossi Lorenza, 2007. "Optimal monetary policy in economies with dual labor markets," wp.comunite 0009, Department of Communication, University of Teramo. [Downloadable!]
    Other versions:
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