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A macroeconomic analysis of the impact of union wage increases on nonunion wages

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  • Yu Hsing

Abstract

Based on the augmented Phillips curve and the autoregressive conditional heteroscedasticity model, the author finds that the growth of nonunion wages are positively associated with expected inflation, productivity growth, and the growth of union wages and are negatively correlated with the unemployment rate. The partial adjustment process is confirmed. Error variance can best be modelled by the ARCH(2) process.

Suggested Citation

  • Yu Hsing, 2001. "A macroeconomic analysis of the impact of union wage increases on nonunion wages," Applied Economics Letters, Taylor & Francis Journals, vol. 8(12), pages 803-806.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:12:p:803-806
    DOI: 10.1080/13504850110046499
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    References listed on IDEAS

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    1. Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 285-326.
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    Cited by:

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    2. Andrea Vaona, 2010. "A survival analysis approach to the duration of union membership in Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 17(11), pages 1089-1093.

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