Subsidising Education with Unionised Labour Markets

Arbeitspapier

It is well known from the literature that a unionisation of labour markets leads to an increase in wages and a decrease in employment. However, in these models human capital formation is usually taken as given. This paper internalises the education decision and shows that a unionisation of the labour market for unskilled workers will also lead to an inefficiently low education level. We discuss the effects of an education subsidy. It will turn out that both the way of financing and the reaction of the trade union to tax rate changes are crucial for the employment and welfare effects.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Munich Discussion Paper ; No. 2002-2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation, Subsidies, and Revenue: General ; Trade Unions: Objectives, Structure, and Effects ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Thema: Human Capital ; Unemployment ; Subsidisation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Wöhlbier, Florian
• Ereignis: Veröffentlichung
• (wer): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (wo): München
• (wann): 2002

Weitere Informationen

• DOI: doi:10.5282/ubm/epub.7
• Handle: http://hdl.handle.net/10419/104093
• URN: urn:nbn:de:bvb:19-epub-7-8
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ