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 83
- Downloads 0
Fiscal Policy and Income Distribution: Measurement for Argentina 1995 – 2010
This paper studies the effect of consolidated –national and provincial– fiscal policy on personal income distribution in Argentina, building a novel panel data for 1995-2010. We find that fiscal policy reduces income ine...
Correlations and Volatility Spillovers between the Carbon Trading Price and Bunker Index for the Maritime Industry
This research intends to investigate the relationship between carbon trading price and the bunker fuel index, with inputs from reviewing current greenhouse gas (GHG) mitigation management and financial measures, for the...
Job Search and Labor Market Outcomes of New Graduates in China: Using the Latest Available Survey Data
This is the first study that uses data collected after the new reform of the household registration system (hukou) on the topic of job search and labor market outcomes of new graduates in China. Data of recent years were...
Financial Crisis Transmission: Foreign Ownership vs. Foreign Funding?
We investigate whether the credit contraction that followed the global financial crisis is due to high foreign bank ownership or high reliance of banks on foreign funding. We apply panel vector auto-regressions to quarte...
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...