Equilibrium earning premium and pension schemes: The long-run macroeconomic effects of the union
Using the theoretical framework based on the monopoly union model described in Kidd and Oswald (1987) and Jones (1987), this paper provides an explicit framework to assess the role of wage moderation in Italy in the last twenty years. There are two crucial ingredients to the model: the composition of union membership and the pension system. We show that the increase in pensioners' membership in the presence of a pay-as-you-go (PAYG) pension scheme has led unions to moderate wage claims. However, this result is reversed when we shift from a PAYG system to a fully-funded (FF) regime (recently adopted in Italy): in this case, the model predicts a rise in wages with respect to the standard model, regardless of the share of pensioners in the membership.
|Date of creation:||10 Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://economia.uniparthenope.it/ise/sito/index.htm
More information through EDIRC
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.:
- Andrea Vaona, 2006. "The Duration of Union Membership: an Empirical Study," Kiel Working Papers 1268, Kiel Institute for the World Economy.
- Devicienti, Francesco & Maida, Agata & Pacelli, Lia, 2008.
"The resurrection of the Italian wage curve,"
Elsevier, vol. 98(3), pages 335-341, March.
- Francesco Devicienti & Agata Maida & Lia Pacelli, 2006. "The Resurrection of the Italian Wage Curve," LABORatorio R. Revelli Working Papers Series 52, LABORatorio R. Revelli, Centre for Employment Studies.
- Devicenti francesco & Maida Agata & Pacelli Lia, 2005. "The Resurrection of the Italian Wage Curve," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200502, University of Turin.
- Francesco Daveri & Cecilia Jona-Lasinio, 2005.
"Italy’s Decline: Getting the Facts Right,"
301, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Manos Matsaganis, 2007. "Union Structures and Pension Outcomes in Greece," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 537-555, 09.
- Askildsen, Jan Erik & Nilsen, Oivind Anti, 2002. "Union membership and wage formation," European Journal of Political Economy, Elsevier, vol. 18(2), pages 345-363, June.
- Corneo, Giacomo, 1995. "Social custom, management opposition, and trade union membership," European Economic Review, Elsevier, vol. 39(2), pages 275-292, February.
- repec:cup:cbooks:9780521464673 is not listed on IDEAS
- Bilancini, Ennio & D’Antoni, Massimo, 2012. "The desirability of pay-as-you-go pensions when relative consumption matters and returns are stochastic," Economics Letters, Elsevier, vol. 117(2), pages 418-422.
- Mario Pianta & Andrea Vaona, 2006.
"Innovation and productivity in European industries,"
34, University of Verona, Department of Economics.
- Mario Pianta & Andrea Vaona, 2007. "Innovation and Productivity in European Industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 485-499.
- Mario Pianta & Andrea Vaona, 2006. "Innovation and Productivity in European Industries," Kiel Working Papers 1283, Kiel Institute for the World Economy.
- Jones, Stephen R G & McKenna, C J, 1994. "A Dynamic Model of Union Membership and Employment," Economica, London School of Economics and Political Science, vol. 61(242), pages 179-89, May.
- Chang, Juin-jen & Lai, Ching-chong & Chang, Wen-ya, 1998. "A Dynamic Model of Union Membership and Employment: A Comment," Economica, London School of Economics and Political Science, vol. 65(257), pages 145-51, February.
- Daniele Checchi & Claudio Lucifora, 2002.
"Unions and labour market institutions in Europe,"
CEPR;CES;MSH, vol. 17(35), pages 361-408, October.
- Pastore, Francesco, 2010.
"Assessing the Impact of Incomes Policy: The Italian Experience,"
IZA Discussion Papers
5082, Institute for the Study of Labor (IZA).
- Francesco Pastore, 2010. "Assessing the impact of incomes policy: the Italian experience," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 793-817, November.
- Booth, Alison L, 1984. "A Public Choice Model of Trade Union Behaviour and Membership," Economic Journal, Royal Economic Society, vol. 94(376), pages 883-98, December.
- Lucio Baccaro, 2002. "Negotiating the Italian pension reform with the unions: Lessons for corporatist theory," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 413-431, April.
- Sergio DESTEFANIS & Giuseppe MASTROMATTEO & Giovanni VERGA, 2005. "Wages and Monetary Policy in Italy Before and After the Wage Agreements," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 289-318.
- Corneo, Giacomo G., 1997. "The theory of the open shop trade union reconsidered," Labour Economics, Elsevier, vol. 4(1), pages 71-84, March.
- Bob Mason & Peter Bain, 1993. "The determinants of trade union membership in Britain: A survey of the literature," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(2), pages 332-351, January.
- Daniele Franco, 2002. "Italy: A Never-Ending Pension Reform," NBER Chapters, in: Social Security Pension Reform in Europe, pages 211-262 National Bureau of Economic Research, Inc.
- repec:rie:review:v:2:y:1997:i:2:n:1 is not listed on IDEAS
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
- Nicola-Maria Riley, 1997. "Determinants of Union Membership: A Review," LABOUR, CEIS, vol. 11(2), pages 265-301, 06.
- Booth, Alison L, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 253-61, February.
- Mauro Costantini & Sergio de Nardis, 2007. "Estimates of Structural Changes in the Wage Equation:Some Evidence for Italy," ISAE Working Papers 86, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Benhabib Jess & Perli Roberto, 1994. "Uniqueness and Indeterminacy: On the Dynamics of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 63(1), pages 113-142, June.
- Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
- Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009.
"Innovation and productivity in SMEs: empirical evidence for Italy,"
Small Business Economics,
Springer, vol. 33(1), pages 13-33, June.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs. Empirical evidence for Italy," Temi di discussione (Economic working papers) 718, Bank of Italy, Economic Research and International Relations Area.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2008. "Innovation and Productivity in SMEs: Empirical Evidence for Italy," NBER Working Papers 14594, National Bureau of Economic Research, Inc.
- Chiarini, Bruno & Piselli, Paolo, 1997. "Wage Setting, Wage Curve and Phillips Curve: The Italian Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(5), pages 545-65, November.
- Buiter, W, 1982.
"Saddlepoint Problems in Continuous Time Rational Expectations Models : A General Method and Some Macroeconomic Examples,"
The Warwick Economics Research Paper Series (TWERPS)
200, University of Warwick, Department of Economics.
- Buiter, Willem H, 1984. "Saddlepoint Problems in Continuous Time Rational Expectations Models: A General Method and Some Macroeconomic Examples," Econometrica, Econometric Society, vol. 52(3), pages 665-80, May.
- Willem H. Buiter, 1984. "Saddlepoint Problems in Contifuous Time Rational Expectations Models: A General Method and Some Macroeconomic Ehamples," NBER Technical Working Papers 0020, National Bureau of Economic Research, Inc.
- Kidd, David P & Oswald, Andrew J, 1987. "A Dynamic Model of Trade Union Behaviour," Economica, London School of Economics and Political Science, vol. 54(215), pages 355-65, August.
- Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November.
- Andrea Brandolini & Piero Casadio & Piero Cipollone & Marco Magnani & Alfonso Rosolia, 2007. "Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces," AIEL Series in Labour Economics, in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, edition 1, chapter 4, pages 31-68 AIEL - Associazione Italiana Economisti del Lavoro.
- Piero, Casadio, 2003. "Wage formation in the Italian private sector after the 1992-93 income policy agreements," MPRA Paper 29396, University Library of Munich, Germany.
- Phillips, Peter C B & Hansen, Bruce E, 1990.
"Statistical Inference in Instrumental Variables Regression with I(1) Processes,"
Review of Economic Studies,
Wiley Blackwell, vol. 57(1), pages 99-125, January.
- Tom Doan, . "FM: RATS procedure to estimate cointegrating vectors using Fully Modified Least Squares," Statistical Software Components RTS00069, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:prt:dpaper:2_2012. 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: (Antonietta Milano)
If references are entirely missing, you can add them using this form.