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Earnings-Related Unemployment Benefits in a Unionised Economy |
We show that a stronger earnings relationship of unemployment compensation reduces wages and increases employment in an economy in which wages are determined by a trade union that maximises the rent from unionisation. The opposite result applies for a utilitarian union. Using manufacturing and non-manufacturing data for 16 OECD countries, estimates suggest that a 10% increase in the earnings relationship is associated with a 1.9% fall in manufacturing wages, a 0.6% reduction in non-manufacturing wages and a 7.3% reduction in unemployment. |
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Autor |
Univ.-Prof. Dr. Laszlo Goerke Jakob B. Madsen |
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Disccussion Paper | | Fachbereich | | Fachrichtung | 2005 | | Volkswirtschaftslehre | | Volkswirtschaftspolitik |
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Schlagwörter |
OECD, earnings relationship, panel data, trade union, unemployment |