Advanced Search
MyIDEAS: Login to save this paper or follow this series

A Dynamic Model of Trade Union Contract Duration

Contents:

Author Info

  • Philip M. Bodman
  • Michael B. Devereux

Abstract

There has been a great deal of research on trade unions and wage contracts in recent year, but there has been relatively little work on the determinants of contract length. This is unusual given that the duration of union contracts has varied substantially in post-war industrial economies both across time and across countries(see Dunlop J. and Bok D. (1970), Christofides L. N. and Wilton D. A. (1983), Ehrenberg Danziger and San (1984), Christofides L. N. (1985), Cecchetti (1987) and Bils M. (1987). This paper reviews the existing literature on contract duration and presents a simple explanation of optimal contract length for a wage setting trade union in a dynamic, uncertain environment. It is argued that optimal contract duration depends on a basic welfare trade-off between the benefits of wage precommitment and the costs of reduced ex-post wage flexibility. The cyclical characteristics of contracts in the model arguably provide an explanation for actual contractual cycles quite different from some alternative current models. The model may also be used to provide certain prediction concerning the determinants of contract length.

Download Info

If 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.
File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_882.pdf
File Function: First version 1993
Download Restriction: no

Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 882.

as in new window
Length: 23 pages
Date of creation: May 1993
Date of revision:
Handle: RePEc:qed:wpaper:882

Contact details of provider:
Postal: Kingston, Ontario, K7L 3N6
Phone: (613) 533-2250
Fax: (613) 533-6668
Email:
Web page: http://qed.econ.queensu.ca/
More information through EDIRC

Related research

Keywords: dynamic; uncertain; trade union; wage contract; welfare trade-off; precommitment; ex-post flexibility; contractual cycles;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:882. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.