Union Activity and Wage-Employment Movements
1986 (English)Report (Other academic)
The paper analyzes how the influence of labor unions over wage contracts may make the labor market less "resilient". Loss of resilience is depicted in two conceptually independent ways: (i) a tendency for changes in unemployment caused by exogenous labor demand shock to persist, (ii) a long-run tendency of such shocks to generate a bounded wage-unemployment ratchet. In this manner, the analysis may help explain why unemployment rates in Europe and the United States have had an upward trend over the past one and a half decades and why the expansion of employment has been much greater in the U.S. than in most European economies after the recent deep recessions.
Place, publisher, year, edition, pages
Stockholm: IIES , 1986. , 17 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 361
IdentifiersURN: urn:nbn:se:su:diva-41542OAI: oai:DiVA.org:su-41542DiVA: diva2:331114