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

Author

Listed:
  • Jaakko Pehkonen

    (University of Jyväskylä)

Abstract

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.

Suggested Citation

  • Jaakko Pehkonen, 1990. "Do trade unions care about employment? : reduced-form test results from the Finnish paper and textile industries," Finnish Economic Papers, Finnish Economic Association, vol. 3(1), pages 26-40, Spring.
    • Handle: RePEc:fep:journl:v:3:y:1990:i:1:p:26-40
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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1990_1c.pdf
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    References listed on IDEAS

    as
    1. Vartia, Tor Eriksson & Antti Suvanto, & Pentti,, 1989. "Wage Setting in Finland," Discussion Papers 286, The Research Institute of the Finnish Economy.
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    Cited by:

    1. Tyrväinen, Timo, 1992. "Wage setting, taxes and demand for labour : Multivariate analysis of the cointegration relations," Research Discussion Papers 22/1992, Bank of Finland.
    2. repec:zbw:bofrdp:1992_022 is not listed on IDEAS
    3. Tyrväinen, Timo, 1992. "Wage setting, taxes and demand for labour: Multivariate analysis of the cointegration relations," Bank of Finland Research Discussion Papers 22/1992, Bank of Finland.

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