Trade Union Determined Wages, Unemployment and the Size of the Public Sector
1984 (English)Report (Other academic)
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
IdentifiersURN: urn:nbn:se:su:diva-41238OAI: oai:DiVA.org:su-41238DiVA: diva2:329162