Right-to-manage unions endogenous growth and welfare
Using the basic overlapping generations one-sector model of endogenous growth we show that unionisation of labour markets may be growth-enhancing with respect to the standard competitive equilibrium economy with full employment, provided the capital's weight in technology and the replacement rate are both high enough. Moreover, a growth-maximising value of the union''s relative wage intensity does exist. In particular, a wage-oriented rather than an employment-oriented union should be preferred as an inducement to a higher per capita income growth. Therefore, an appropriate combination of both union''s behaviour and government policies may trigger a virtuous growth mechanism. A policy implication is that the government could follow the union''s growth-maximising rule simply by choosing properly the replacement rate. Moreover, along the balanced growth path, individuals can be better off in a unionised economy with unemployment rather than in the competitive economy with full employment.
Volume (Year): 29 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Robert J. Barro, 1988.
"Government Spending in a Simple Model of Endogenous Growth,"
NBER Working Papers
2588, National Bureau of Economic Research, Inc.
- Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October.
- Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
- Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
- John H. Pencavel, 1984.
"The Tradeoff Between Wages and Employment in Trade Union Objectives,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 99(2), pages 215-231.
- John H. Pencavel, 1982. "The Trade-Off between Wages and Employment in Trade Union Objectives," NBER Working Papers 0870, National Bureau of Economic Research, Inc.
- Corneo, Giacomo & Marquardt, Marko, 2000. "Public pensions, unemployment insurance, and growth," Journal of Public Economics, Elsevier, vol. 75(2), pages 293-311, February.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Mezzetti, Claudio & Dinopoulos, Elias, 1991.
"Domestic unionization and import competition,"
Journal of International Economics,
Elsevier, vol. 31(1-2), pages 79-100, August.
- Caballero, Ricardo J., 1993. "Unemployment, consumption and growth : by Charles Bean and Chris Pissarides," European Economic Review, Elsevier, vol. 37(4), pages 855-859, May.
- Agell, Jonas & Lommerud, Kjell Erik, 1993. " Egalitarianism and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 559-79, December.
- Andreas Irmen & Berthold U. Wigger, 2002.
"Trade Union Objectives and Economic Growth,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 59(1), pages 49-, February.
- Andreas Irmen & Berthold U. Wigger, 2000. "Trade Union Objectives and Economic Growth," CSEF Working Papers 34, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Andreas Irmen & Berthold U. Wigger, 2001. "Trade Union Objectives and Economic Growth," CESifo Working Paper Series 551, CESifo Group Munich.
- Irmen, Andreas & Wigger, Berthold, 2001. "Trade Union Objectives and Economic Growth," CEPR Discussion Papers 3027, C.E.P.R. Discussion Papers.
- C Bean & Christopher A. Pissarides, 1992.
"Unemployment, Consumption and Growth,"
CEP Discussion Papers
dp0100, Centre for Economic Performance, LSE.
- Michael B. Devereux & Ben Lockwood, 1989.
"Trade Unions, Non-Binding Wage Agreements, and Capital Accumulation,"
743, Queen's University, Department of Economics.
- Devereux, Michael B. & Lockwood, Ben, 1991. "Trade unions, non-binding wage agreements, and capital accumulation," European Economic Review, Elsevier, vol. 35(7), pages 1411-1426, October.
- Chang, Juin-jen & Shaw, Ming-fu & Lai, Ching-chong, 2007.
"A "Managerial" trade union and economic growth,"
European Economic Review,
Elsevier, vol. 51(2), pages 365-384, February.
- Daveri, Francesco & Tabellini, Guido, 1997.
"Unemployment, Growth and Taxation in Industrial Countries,"
CEPR Discussion Papers
1681, C.E.P.R. Discussion Papers.
- Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 47-104, 04.
- Francesco Daveri & Guido Tabellini, . "Unemployment, Growth and Taxation in Industrial Countries," Working Papers 122, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Sergio T. Rebelo, 1990.
"Long Run Policy Analysis and Long Run Growth,"
NBER Working Papers
3325, National Bureau of Economic Research, Inc.
- Daniel Cardona & Fernando Sánchez-Losada, 2006. "Unions, qualification choice, and output," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 50-76, January.
- Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 477-494.
- de la Croix, David & Licandro, Omar, 1995. " Underemployment, Irreversibilities and Growth under Trade Unionism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(3), pages 385-99, September.
- V. Anton Muscatelli & Patrizio Tirelli, 2001. "Unemployment and growth: some empirical evidence from structural time series models," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 1083-1088.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173, July.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, July.
- Rui Coimbra & Teresa Lloyd-Braga & Leonor Modesto, 2005. "Endogenous fluctuations in unionized economies with productive externalities," Economic Theory, Springer, vol. 26(3), pages 629-649, October.
- Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
- Luciano Fanti & Luca Gori, 2007. "Fertility, income and welfare in an OLG model with regulated wages," International Review of Economics, Springer, vol. 54(4), pages 405-427, December.
- Doan Hong Quang & Neil Vousden, 2002. "Unionisation, Unemployment and Economic growth," International and Development Economics Working Papers idec02-10, International and Development Economics.
- Clark, A., 1989.
"Efficient Bargains And The Mcdonald-Solow Conjecture,"
350, London School of Economics - Centre for Labour Economics.
- Clark, Andrew, 1990. "Efficient Bargains and the McDonald-Solow Conjecture," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 502-28, October.
- Futagami, Koichi & Morita, Yuichi & Shibata, Akihisa, 1993. " Dynamic Analysis of an Endogenous Growth Model with Public Capital," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 607-25, December.
- Jose Maria Ramos Parreno & Fernando Sanchez Losada, 1999.
"The role of unions in an endogenous growth model with human capital,"
Working Papers in Economics
57, Universitat de Barcelona. Espai de Recerca en Economia.
- Ramos Parreno, Jose Maria & Sanchez-Losada, Fernando, 2002. "The role of unions in an endogenous growth model with human capital," Journal of Macroeconomics, Elsevier, vol. 24(2), pages 171-192, June.
- Hoon, Hian Teck & Phelps, Edmund S., 1997. "Growth, wealth and the natural rate: Is Europe's jobs crisis a growth crisis?," European Economic Review, Elsevier, vol. 41(3-5), pages 549-557, April.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08o40023. 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: (John P. Conley)
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.