Unions, growth and unemployment

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URI: http://nbn-resolving.de/urn:nbn:de:bsz:21-opus-19535
Dokumentart: WorkingPaper
Date: 2001
Source: Tübinger Diskussionsbeiträge der Wirtschaftswissenschaftlichen Fakultät ; 206
Language: English
Faculty: 6 Wirtschafts- und Sozialwissenschaftliche Fakultät
Department: Wirtschaftswissenschaften
DDC Classifikation: 330 - Economics
Keywords: Arbeitsmarkt , Gewerkschaft , Tarifpartner
License: http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=de http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=en
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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.

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