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Growth Externalities, Unions, and Long-term Wage Accords

Author

Listed:
  • Zagler, M.

Abstract

This paper presents an innovation driven endogenous growth model, where firms and unions bargain over wages. We find that the degree of centralization of the bargaining structure plays a crucial rule for economic performance. Central bargaining, which incorporates the leapfrogging externality incorporated in firm-level bargaining, will yield lower rates of unemployment for a given rate of economic growth.

Suggested Citation

  • Zagler, M., 2000. "Growth Externalities, Unions, and Long-term Wage Accords," Economics Working Papers eco2000/18, European University Institute.
    • Handle: RePEc:eui:euiwps:eco2000/18
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    More about this item

    Keywords

    UNEMPLOYMENT ; WAGES ; LABOUR;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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