IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The outcome of different bargaining models: the effects on wages, employment and the employment mix

The paper analyses data on wages, employment and labour composition in the Uruguayan manufacturing sector during 1985-1999 in order to get some evidence on the effects of union action on these variables. The whole period is first studied using a model in which no assumptions on the underlying bargaining model are made. The results support the hypothesis of two different bargaining frameworks in the 80s and 90s. Therefore, a right-tomanage bargaining model is specified for the 80s and a recursive contracts model for the 90s. Union effects are such that while in the 80s the effect of trade unions were to increase wages and hence decrease employment, in the nineties they moderated wage demands in exchange of more job stability. They not only managed to have a positive direct effect on employment but also to buffer the negative effects of increased openness and demand fluctuations on employment. The existence of unions also had an impact on labour composition, favouring a higher share of non-production workers in total employment. The result can be linked to the fact that firms moved to more capital intensive – or at least more skilled labour intensivetechnologies to avoid union costs. A final finding is related to the fact that the change in the Uruguayan bargaining regime at the beginning of the 90s – by which the mandatory extension of contracts vanished – favoured a more decentralised negotiation scheme and thus ended with the homogenous impact found in the 80s, since coordination in bargaining was lost.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://decon.edu.uy/publica/2001/Doc1401.pdf
Download Restriction: no

Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 1401.

as
in new window

Length: 33 pages
Date of creation: Dec 2001
Date of revision:
Handle: RePEc:ude:wpaper:1401
Contact details of provider: Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
Email:


More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-45, June.
  2. Boal, William M & Pencavel, John, 1994. "The Effects of Labor Unions on Employment, Wages, and Days of Operation: Coal Mining in West Virginia," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 267-98, February.
  3. John M. Abowd & Laurence Allain, 1996. "Compensation Structure and Product Market Competition," NBER Working Papers 5493, National Bureau of Economic Research, Inc.
  4. Andrew Oswald, 1984. "Efficient Contracts are on the Labour Demand Curve: Theory and Facts," Working Papers 555, Princeton University, Department of Economics, Industrial Relations Section..
  5. Adriana Cassoni & Zuleika Ferré, 1997. "Costos no salariales en el mercado de trabajo del Uruguay," Documentos de Trabajo (working papers) 0897, Department of Economics - dECON.
  6. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
  7. Steven G Allen & Adriana Cassoni & Gastón J Labadie, 1996. "Wages and Employment After Reunionization in Uruguay," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(99), pages 277-294.
  8. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:1401. 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: (Irene Musio)

or (Héctor Pastori)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.