Ten Years of Mrs. T
We argue that the 1970s were characterized by attempts to maintain a cooperative, low unemployment equilibrium in the face of considerable union power, through use of incomes policies and neo-corporatist machinery. The 1980s saw a shift away from this, towards direct measures to limit union power. This, together with the adoption of tight macroeconomic policies, explains the initial rise in unemployment. The reduction in union power also helps to explain the acceleration in productivity growth. The craft nature of much of the British union movement has led to a multiplication of bargaining units wihin firms. Bargaining in isolation a union can perceive overmanning and other restrictive practices as being in its intrests, resulting in low wages and productivity. A fall in union power results in a reduction in these inefficiencies and leads not only to a rise in productivity but also in wages.
|Date of creation:||Apr 1989|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Newell, A. & Symons, J., 1989. "The Passing Of The Golden Age," Papers 347, London School of Economics - Centre for Labour Economics.
- S.J. Prais & Karin Wagner, 1988. "Productivity and Management: the Training of Foremen in Britain and Germany," National Institute Economic Review, National Institute of Economic and Social Research, vol. 123(1), pages 34-46, February.
- Wadhwani, Sushil & Wall, Martin, 1986. "The UK Capital Stock--New Estimates of Premature Scrapping," Oxford Review of Economic Policy, Oxford University Press, vol. 2(3), pages 44-55, Autumn.
- Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September.
- Bean, C. & Gavosto, A., 1989. "Outsiders, Capacity Shortages And Unemployment In The United Kingdom," Papers 332, London School of Economics - Centre for Labour Economics.
- Olivier J. Blanchard & Lawrence H. Summers, 1986.
"Hysteresis and the European Unemployment Problem,"
427, Massachusetts Institute of Technology (MIT), Department of Economics.
- A. Daly & D.T. Jones & K. Wagner, 1981. "Productivity and Industrial Structure," National Institute Economic Review, National Institute of Economic and Social Research, vol. 97(1), pages 83-83, August.
- Robert E. Hall, 1986. "Market Structure and Macroeconomic Fluctuations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(2), pages 285-338.
- Newell, A. & Symons, J. S. V., 1987. "Corporatism, laissez-faire and the rise in unemployment," European Economic Review, Elsevier, vol. 31(3), pages 567-601, April.
- Oswald, Andrew J & Turnbull, Peter J, 1985. "Pay and Employment Determination in Britain: What Are Labour," Oxford Review of Economic Policy, Oxford University Press, vol. 1(2), pages 80-97, Summer.
- Lindbeck, Assar & Snower, Dennis J, 1988.
"Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach,"
American Economic Review,
American Economic Association, vol. 78(1), pages 167-88, March.
- Lindbeck, Assar & Snower, Dennis J., 1987. "Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach," CEPR Discussion Papers 196, C.E.P.R. Discussion Papers.
- William H. Buiter & Marcus Miller, 1981. "The Thatcher Experiment: The First Two Years," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(2), pages 315-380.
- Ashton, Paul & Minford, Patrick, 1988.
"The Poverty Trap and the Laffer Curve: What Can the GHS Tell Us?,"
CEPR Discussion Papers
275, C.E.P.R. Discussion Papers.
- Minford, Patrick & Ashton, Paul, 1991. "The Poverty Trap and the Laffer Curve--What Can the GHS Tell Us?," Oxford Economic Papers, Oxford University Press, vol. 43(2), pages 245-79, April.
- Willem H. Buiter & Marcus Miller, 1983. "Changing the Rules: Economic Consequences of the Thatcher Regime," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 14(2), pages 305-380.
- A. Daly & D.M.W.N. Hitchens & K. Wagner, 1985. "Productivity, Machinery and Skills in a Sample of British and German Manufacturing Plants," National Institute Economic Review, National Institute of Economic and Social Research, vol. 111(1), pages 48-61, February.
- Gottfries, Nils & Horn, Henrik, 1987. "Wage Formation and the Persistence of Unemployment," Economic Journal, Royal Economic Society, vol. 97(388), pages 877-84, December.
- repec:sae:niesru:v:126:y::i:1:p:57-70 is not listed on IDEAS
- Jackman, R & Roper, S, 1987. "Structural Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 9-36, February.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:316. 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: ()
If references are entirely missing, you can add them using this form.