References of "FinanzArchiv: Public Finance Analysis"
     in
Bookmark and Share    
Full Text
Peer Reviewed
See detailTrade Union Objectives and Economic Growth
Irmen, Andreas UL; Wigger, Berthold U.

in FinanzArchiv: Public Finance Analysis (2002), 59(1), 49-

A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers ... [more ▼]

A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers' marginal propensity to save exceeds the one of capitalists. We make this point in an overlapping generations framework with unionized labor. Considering a monopoly union which cares for wages and employment, we determine a range of trade union objectives and characterize the aggregate technology so that the union's policy spurs per capita income growth. However, the union's policy cannot lead to a Pareto-improvement. [less ▲]

Detailed reference viewed: 64 (0 UL)