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Wage Moderation and Union Structure

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  • Holden, Steinar
  • Raaum, Oddbjorn

Abstract

Models with a single central trade union representing the whole labor market are often taken to illustrate the wage-setting process in the Scandinavian countries. This paper argues that the assumption of a single central trade union is not realistic. Therefore, the authors model an economy with several trade unions. These unions may or may not find it in their interest to cooperate to keep nominal wages down, in effect acting like a central trade union. The authors discuss under what conditions such cooperation is likely to exist. Copyright 1991 by Royal Economic Society.

Suggested Citation

  • Holden, Steinar & Raaum, Oddbjorn, 1991. "Wage Moderation and Union Structure," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 409-423, July.
    • Handle: RePEc:oup:oxecpp:v:43:y:1991:i:3:p:409-23
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    1. repec:clr:wugarc:y:1993:v:19i:4p:423 is not listed on IDEAS
    2. Barkbu, Bergljot Bjornson & Nymoen, Ragnar & Roed, Knut, 2003. "Wage coordination and unemployment dynamics in Norway and Sweden," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 37-58, March.
    3. Bryson, Alex & Dale-Olsen, Harald & Nergaard, Kristine, 2016. "Gender Differences in the Union Wage Premium? A Comparative Case Study," IZA Discussion Papers 10435, Institute of Labor Economics (IZA).
    4. repec:zbw:bofrdp:1989_022 is not listed on IDEAS
    5. Nymoen, Ragnar & Sparrman, Victoria, 2012. "Panel Data Evidence on the Role of Institutions and Shocks for Unemployment Dynamics and Equilibrium," Memorandum 20/2012, Oslo University, Department of Economics.
    6. repec:aia:aiaswp:wp42 is not listed on IDEAS
    7. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2017. "Union Density, Productivity, and Wages," DoQSS Working Papers 17-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    8. Valeri Sorolla-i-Amat, "undated". "Macroeconomic Effects In Centralized And Decentralized Wage Setting Systems," UFAE and IAE Working Papers 459.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    9. Barth, Erling & Bratsberg, Bernt & Naylor, Robin A. & Raaum, Oddbjørn, 2002. "Explaining Variations in Wage Curves: Theory and Evidence," Memorandum 03/2002, Oslo University, Department of Economics.
    10. Holden, Steinar, 2005. "Monetary regimes and the co-ordination of wage setting," European Economic Review, Elsevier, vol. 49(4), pages 833-843, May.
    11. Barth, Erling & Zweimuller, Josef, 1993. "Bargaining Regimes and Wage Dispersion," Institute for Research on Labor and Employment, Working Paper Series qt5w75g2d8, Institute of Industrial Relations, UC Berkeley.
    12. Lorenzo Forni, 2004. "Centralization of wage bargaining and the unemployment rate: revisiting the hump-shape hypothesis," Temi di discussione (Economic working papers) 492, Bank of Italy, Economic Research and International Relations Area.
    13. Calmfors, Lars, 2001. "Wages and wage-bargaining institutions in the EMU – a survey of the issues," Seminar Papers 690, Stockholm University, Institute for International Economic Studies.
    14. Holden,S., 1999. "Wage setting under different monetary regimes," Memorandum 12/1999, Oslo University, Department of Economics.
    15. Tyrväinen, Timo, 1989. "Why break down centralized bargaining?," Research Discussion Papers 22/1989, Bank of Finland.
    16. Blandine ZIMMER, 2005. "Coordination des négociations salariales en UEM : un rôle majeur pour la BCE," Working Papers of BETA 2005-09, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Blomgren-Hansen, Niels, 2012. "Optimum organization of the labor market in a small open economy," Labour Economics, Elsevier, vol. 19(2), pages 222-231.
    18. Lars Calmfors, 2001. "Wages and Wage-Bargaining Institutions in the EMU – A Survey of the Issues," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(4), pages 325-351, December.
    19. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.

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