Unions, growth and unemployment

Arbeitspapier

We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in the supply of human capital, however, on the one hand induces firms to substitute high-skilled labour for jobs previously performed by low-skilled individu- als and on the other hand, increases the demand for low-skilled labour as their productivity rises due to the higher skill-intensity. Depending on which effect dominates, either a positive or negative relationship between the growth and unemployment rates results.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tübinger Diskussionsbeiträge ; No. 206

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Trade Unions: Objectives, Structure, and Effects ; Innovation and Invention: Processes and Incentives ; One, Two, and Multisector Growth Models
• Subject: Unions ; Umemployment ; Growth ; Heterogenerous Labour ; Theorie der Arbeitslosigkeit ; Arbeitsmarkttheorie ; Neue Wachstumstheorie ; Mehr-Sektoren-Modell ; Lohnverhandlungstheorie ; Hochqualifizierte Arbeitskräfte ; Ungelernte Arbeitskräfte ; Lohnstruktur ; Faktorsubstitution ; Produktivität ; Beschäftigungseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wapler, Rüdiger
• Event: Veröffentlichung
• (who): Eberhard Karls Universität Tübingen, Wirtschaftswissenschaftliche Fakultät
• (where): Tübingen
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/47538
• URN: urn:nbn:de:bsz:21-opus-19535
• Last update: 10.03.2025, 11:46 AM CET