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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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    4. 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.
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    7. Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From The Swedish Wood Industry," Papers 419, Stockholm - International Economic Studies.
    8. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
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    11. repec:bla:econom:v:57:y:1990:i:226:p:143-70 is not listed on IDEAS
    12. 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.
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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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