Nominal versus real wage rigidity in a monopoly union: A synthesis
Based upon a monopoly union model, this paper addresses how the degree of money illusion of the union member and the indexation rule of unemployment benefits are interdependent in governing the possibility of either nominal or real wage rigidity. Two main findings emerge from the analysis. First, nominal wage rigidity is present unless union members are characterized by complete money illusion and the government does not adjust its nominal unemployment payments. Second, real wage rigidity holds if union members are free of money illusion and nominal unemployment benefits are fully indexed to either union-set wages or the product price. Copyright International Atlantic Economic Society 2002
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 30 (2002)
Issue (Month): 1 (March)
Pages: 61-73
| Handle: | RePEc:kap:atlecj:v:30:y:2002:i:1:p:61-73 |
| DOI: | 10.1007/BF02299147 |
| Contact details of provider: | Web page: http://www.springer.com Postal: Suite 650, International Tower, 229 Peachtree Street, N.E., Atlanta, GA 30303Phone: (404) 965-1555 Fax: (404) 965-1556 Web page: http://www.iaes.org/ Email: More information through EDIRC
|
| Order Information: | Web: http://www.springer.com/economics/journal/11293/PS2 |
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.:
- Calmfors, Lars & Horn, Henrik, 1985. " Classical Unemployment, Accommodation Policies and Adjustment of Real Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 234-261.
- Dennis J. Snower, 1996. "Unemployment Benefits: An Assessment of Proposals for Reform," Archive Discussion Papers 9601, Birkbeck, Department of Economics, Mathematics & Statistics.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
OUP Catalogue,
Oxford University Press, number 9780199279173, April.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
- Creedy, John & McDonald, Ian M, 1991. "Models of Trade Union Behaviour: A Synthesis," The Economic Record, The Economic Society of Australia, vol. 67(199), pages 346-359, December.
- Pencavel, John, 1985. " Wages and Employment under Trade Unionism: Microeconomic Models and Macroeconomic Applications," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 197-225.
- Craig, George D, 1974. "Money Illusion and the Aggregate Consumption Function: Note," American Economic Review, American Economic Association, vol. 64(1), pages 195-199, March.
- Sampson, Anthony A, 1986. "The Shift to Indirect Taxation in a Unionized Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 38(1), pages 87-91, January.
- Edwaed J. Kane & Alvin K. Klevorick, 1967. "Absence Of Money Illusion: A Sine Qua Non For Neutral Money?," Journal of Finance, American Finance Association, vol. 22(3), pages 419-423, 09.
- Shah, Anup, 1985. "A macro model with trade unions," Journal of Macroeconomics, Elsevier, vol. 7(2), pages 175-194.
- Branson, William H & Klevorick, Alvin K, 1969. "Money Illusion and the Aggregate Consumption Function," American Economic Review, American Economic Association, vol. 59(5), pages 832-849, December.
- Oswald, Andrew J, 1982. "The Microeconomic Theory of the Trade Union," Economic Journal, Royal Economic Society, vol. 92(367), pages 576-595, September.
- Yip, Chong K., 1988. "The employment effects of tariffs in an efficient bargain model," Journal of Macroeconomics, Elsevier, vol. 10(3), pages 477-485.
- Benassy, Jean-Pascal, 1995. "Nominal Rigidities in Wage Setting by Rational Trade Unions," Economic Journal, Royal Economic Society, vol. 105(430), pages 635-643, May.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December. Full references (including those not matched with items on IDEAS)
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.
When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:30:y:2002:i:1:p:61-73. 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: (Sonal Shukla)
or (Rebekah McClure)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.