Wage Bargaining, Union Membership, and the Organization of Unemployment Insurance
The paper offers a theoretical analysis of a labor market institution known as the Gent system, which is a system where unions run unemployment insurance (UI) through government-subsidized UI funds. This sytem is practiced in four Nordic countries with comparatively very high unionization rates. The analysis shows that the Gent system is more conducive to unionization than a compulsory UI system if the Gent system is heavily subsidized by the government or if workers are strongly risk averse. Moreover, a rise in the share of benefits financed by union members is likely to reduce wages as well as union membership.
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|Date of creation:||15 Sep 1996|
|Publication status:||Published in Labour Economics, 1999, pages 397-415.|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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- A L Booth & M Chatterji, "undated".
"Union Membership And Wage Bargaining When Membership Is Not Compulsory,"
Dundee Discussion Papers in Economics
048, Economic Studies, University of Dundee.
- Booth, Alison L & Chatterji, Monojit, 1995. "Union Membership and Wage Bargaining When Membership is Not Compulsory," Economic Journal, Royal Economic Society, vol. 105(429), pages 345-360, March.
- Booth, Alison L & Chatterji, Monojit, 1994. "Union Membership and Wage Bargaining When Membership is Not Compulsory," CEPR Discussion Papers 884, C.E.P.R. Discussion Papers.
- Holmlund, Bertil & Lundborg, Per, 1989. "Unemployment insurance schemes for reducing the natural rate of unemployment," Journal of Public Economics, Elsevier, vol. 38(1), pages 1-15, February.
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- Carruth, Alan A & Oswald, Andrew J, 1985.
"Miners' Wages in Post-war Britain: An Application of a Model of Trade Union Behaviour,"
Royal Economic Society, vol. 95(380), pages 1003-1020, December.
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- Neumann, George & Pedersen, Peder J. & Westergard-Nielsen, Niels, 1991. "Long-run international trends in aggregate unionization," European Journal of Political Economy, Elsevier, vol. 7(3), pages 249-274, October.
- Holmlund, Bertil & Lundborg, Per, 1988. " Unemployment Insurance and Union Wage Setting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(2), pages 161-172.
- Kiander, Jaakko, 1993. "Endogenous unemployment insurance in a monopoly union model when job search matters," Journal of Public Economics, Elsevier, vol. 52(1), pages 101-115, August.
- Booth, Alison L & Chatterji, Monojit, 1993. "Reputation, Membership and Wages in Open Shop Trade Union," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 23-41, January.
- Calmfors, L. & Forslund, A., 1989. "Wage Setting In Sweden," Papers 430, Stockholm - International Economic Studies.
- Naylor, R. & Cripps, M., 1991.
"An Economic Theory of the Open Shop Trade Union,"
The Warwick Economics Research Paper Series (TWERPS)
372, University of Warwick, Department of Economics.
- Lockwood, Ben & Manning, Alan, 1993. "Wage setting and the tax system theory and evidence for the United Kingdom," Journal of Public Economics, Elsevier, vol. 52(1), pages 1-29, August.
- Jakobsson, Ulf, 1976. "On the measurement of the degree of progression," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 161-168.
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