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Labour Mobilization, Falling Wages and Residual Inequality

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  • Francesco Bogliacino

Abstract

In this paper we propose a theoretical model to account for the effect of adversary labour relations on wage distribution. In particular, we study the role of mobilization waves in an environment in which firms protect themselves from uncertainty using dualistic production systems, and we show that they can end up with increasing inequality and lower average wages. We claim that our theoretical framework can be used to complement other explanations of the increase in the residual inequality in US wage distribution that occurred in the 1980s.

Suggested Citation

  • Francesco Bogliacino, 2011. "Labour Mobilization, Falling Wages and Residual Inequality," Economia politica, Società editrice il Mulino, issue 1, pages 73-96.
    • Handle: RePEc:mul:jb33yl:doi:10.1428/34346:y:2011:i:1:p:73-96
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    More about this item

    Keywords

    J31; J42; J53;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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