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Trade Union Determined Wages, Unemployment and the Size of the Public Sector
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1984 (English)Report (Other academic)
Abstract [en]

the interrelation between the size of the public sector and trade union wage claims is frequently emphasized in the policy debate in smaller developed economies - yet it has attracted very little theoretical analysis. A model comprising a private and a public sector with a wage-setting private sector union is employed in order to focus on possible consequences of the divergence in interests between employed and unemployed workers. It is shown that a reduction in the size of the public sector might cause long-term and even "permanent" unemployment and that a commonly conducted employment stabilization policy might also have structural consequences.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 37 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 271
National Category
URN: urn:nbn:se:su:diva-41238OAI: diva2:329162
Available from: 2010-07-09 Created: 2010-07-08 Last updated: 2010-07-09Bibliographically approved

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