What Determines Union Density? A Political Economy Model of the Labor Market with Empirical Evidence in the Context of European Countries
Journal Title: Review of Economics & Finance - Year 2017, Vol 10, Issue 4
Abstract
In this investigation, a political economy model of the labor market is proposed, where unions offer their (old and new) affiliates the combinations between the average real wage level and the standard deviation of wages or salaries. Globalization and other forces, however, have made it recently more difficult for the unions to pursue their policy in the backdrop of a declining union density. This has been established empirically for selected European countries. In an econometric exercise, we have also tested directly the impact of changes in real wages, minimum wage rate, and the effect of 90 to 10 decile ratio on the change in the degree of affiliation, which the unions were able to achieve in the recent past. We show empirically for a sample of European countries that unions can be either rewarded for their achievements or incentived to correct adverse developments in the labor market.
Authors and Affiliations
Michael Öllinger, Friedrich L. Sell
Keywords
Related Articles
- EP ID EP258229
- DOI -
- Views 100
- Downloads 0
Effect of Intellectual Capital on Firms’ Competitive Advantage Condition: An Empirical Investigation in India
This paper aims to model the effect of intellectual capital on firms’ competitive advantage condition across selected Indian industries. Using a panel dataset consisting of 146 Indian companies listed in the Bombay Stock...
The Recent Evolution of the U.S. Beveridge Curve: Evidence from the ARDL Approach
Using a search and match model of employment, and labor market data from 2000 to the present, this paper provides updated empirical evidence of the U.S. Beveridge Curve – an inverse unemployment-vacancy (UV) relationship...
The US Monetary Base and Major World Equity Markets: An Empirical Investigation
This paper investigates the relationship between the US monetary base and the five largest equity indices of the world. The mainstay of the study is the vector autoregressive approach (VAR). Analyzing impulse response fu...
Digital Divide and Income Inequality: A Spatial Analysis
A spatial quantile regression model, which can fully describe the distribution characteristics and spillover effects, is applied to explore the effect of digital divide on the income inequality. Firstly, the estimation r...
An Integrated Model for the Cost-Minimizing Funding of Corporate Activities over Time
To enhance the value of a firm, the firm’s management must attempt to minimize the total discounted cost of financing over a planning horizon. Unfortunately, the variety of sources of funds and the constraints that may b...