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Do trade unions care about employment? : reduced-form test results from the Finnish paper and textile industries

  • Jaakko Pehkonen

    (University of Jyväskylä)

Registered author(s):

    This study reports the results of testing the seniority model of trade union behaviour using data on two Finnish industries. We found that; (i) the empirical results do not support the idea that the aim of trade unions is merely to push their members' wages as high as possible; (ii) the relationship between the real consumption wage and aggregate unemployment is non-linear in such a way that the unemployment elasticity of the real consumption wage rises in absolute terms with the unemployment rate; and (iii) the unemployment elasticity of the real consumption wage differs significantly across the industries studied.

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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1990_1c.pdf
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    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 3 (1990)
    Issue (Month): 1 (Spring)
    Pages: 26-40

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    Handle: RePEc:fep:journl:v:3:y:1990:i:1:p:26-40
    Contact details of provider: Web page: http://www.taloustieteellinenyhdistys.fi

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    1. David G. Blanchflower & Andrew J. Oswald & Mario D. Garrett, 1989. "Insider Power in Wage Determination," NBER Working Papers 3179, National Bureau of Economic Research, Inc.
    2. Carruth, Alan A & Oswald, Andrew J & Findlay, Lewis, 1986. "A Test of a Model of Trade Union Behaviour: The Coal and Steel Industries in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(1), pages 1-18, February.
    3. Nickell, S J & Andrews, M, 1983. "Unions, Real Wages and Employment in Britain 1951-79," Oxford Economic Papers, Oxford University Press, vol. 35(0), pages 183-206, Supplemen.
    4. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
    5. Hendry, David F & Mizon, Grayham E, 1978. "Serial Correlation as a Convenient Simplification, not a Nuisance: A Comment on a Study of the Demand for Money by the Bank of England," Economic Journal, Royal Economic Society, vol. 88(351), pages 549-63, September.
    6. Oswald, Andrew J., 1993. "Efficient contracts are on the labour demand curve : Theory and facts," Labour Economics, Elsevier, vol. 1(1), pages 85-113, June.
    7. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-93.
    8. Vartia, Tor Eriksson & Antti Suvanto, & Pentti,, 1989. "Wage Setting in Finland," Discussion Papers 286, The Research Institute of the Finnish Economy.
    9. Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From The Swedish Wood Industry," Papers 419, Stockholm - International Economic Studies.
    10. Alan Carruth & Andrew Oswald, 1984. "Miners' Wages in Post-War Britain: An Application of a Model of Trade Union Behavior," Working Papers 558, Princeton University, Department of Economics, Industrial Relations Section..
    11. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    12. Holden, S., 1989. "Wage Drift In Norway: A Bargaining Approach," Papers 438, Stockholm - International Economic Studies.
    13. Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From Swedish Wood Industry," Papers 1988g, Uppsala - Working Paper Series.
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