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Reinterpreting social pacts: theory an evidence

Listed author(s):
  • Emilio Colombo

    ()

  • Patrizio Tirelli

    ()

  • Jelle Visser

Economists have largely neglected the analysis of the relevant factors that induce policymakers and trade unions to sign social pacts, despite their clear implications for economic policies and the functioning of labour markets. In this paper we fill this gap. We build a simple theoretical framework that models social pacts as the outcome of a bargaining process, where the probability of observing a pact is essentially determined by politico-economic factors. Then we test the model using a new and original data set that documents the features of social pacts implemented in advanced economies over the last 30 years.

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File URL: http://dems.unimib.it/repec/pdf/mibwpaper187.pdf
File Function: First version, 2010
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Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 187.

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Length: 30 pages
Date of creation: May 2010
Date of revision: May 2010
Handle: RePEc:mib:wpaper:187
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