IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v1y2009i2p228-233.html
   My bibliography  Save this article

A comment on fair-shares and trade union behaviour

Author

Listed:
  • Trond-Arne Borgersen

Abstract

This article comments on trade union behaviour and the fair-share rule of McDonald and Solow (1981) 'Wage bargaining and employment', American Economic Review, Vol. 71, pp.896–908. A small intertemporal model of union behaviour which shows how the fair-share rule only is valid in long run equilibrium is presented. An intertemporal fair-share rule which coincides with the McDonald and Solow rule in long run equilibrium is instead derived. The intertemporal rule links wages to the permanent value of labour's contribution to output, and ensures capital a return equal to its outside option. The model shows how entrenched union behaviour coincides with the reasoning of implicit contract theory, and provides a possible solution to the enforcement problem of implicit contracts.

Suggested Citation

  • Trond-Arne Borgersen, 2009. "A comment on fair-shares and trade union behaviour," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 1(2), pages 228-233.
  • Handle: RePEc:ids:ijecbr:v:1:y:2009:i:2:p:228-233
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=24021
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:1:y:2009:i:2:p:228-233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.