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Taxation, Wage Bargaining, and Unemployment

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  • Mares,Isabela

Abstract

Why were European economies able to pursue the simultaneous commitment to full employment and welfare state expansion during the first decades of the postwar period and why did this virtuous relationship break down during recent decades? This book provides an answer to this question, by highlighting the critical importance of a political exchange between unions and governments, premised on wage moderation in exchange for the expansion of social services and transfers. The strategies pursued by these actors in these political exchanges are influenced by existing wage bargaining institutions, the character of monetary policy and by the level and composition of social policy transfers. The book demonstrates that the gradual growth in the fiscal burden has undermined the effectiveness of this political exchange, lowering the ability of unions' wage policies to affect employment outcomes.

Suggested Citation

  • Mares,Isabela, 2006. "Taxation, Wage Bargaining, and Unemployment," Cambridge Books, Cambridge University Press, number 9780521674119, November.
    • Handle: RePEc:cup:cbooks:9780521674119
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    Cited by:

    1. Nicola Acocella & Giovanni Bartolomeo, 2013. "The Cost Of Social Pacts," Bulletin of Economic Research, Wiley Blackwell, vol. 65(3), pages 238-255, July.
    2. Baccaro, Lucio & Neimanns, Erik, 2021. "Determinants of wage (dis-)satisfaction: Trade exposure, export-led growth, and the irrelevance of bargaining structure," MPIfG Discussion Paper 21/3, Max Planck Institute for the Study of Societies.
    3. Baccaro, Lucio & Simoni, Marco, 2010. "Organizational determinants of wage moderation," LSE Research Online Documents on Economics 33510, London School of Economics and Political Science, LSE Library.
    4. Wehke, Sven, 2009. "Union wages, hours of work and the effectiveness of partial coordination agreements," Labour Economics, Elsevier, vol. 16(1), pages 89-96, January.
    5. CAEYERS, Bet & PAUWELS, Wilfried, 2006. "Corporatism and macroeconomic stabilization policies," Working Papers 2006035, University of Antwerp, Faculty of Business and Economics.
    6. Huo, Jingjing, 2015. "How Nations Innovate: The Political Economy of Technological Innovation in Affluent Capitalist Economies," OUP Catalogue, Oxford University Press, number 9780198735847.
    7. Jaakko Kiander & Pekka Sauramo & Hannu Tanninen, 2009. "The Finnish incomes policy as corporatist political exchange: development of social capital and the social wage," Working Papers 256, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    8. Jaakko Kiander & Pekka Sauramo & Hannu Tanninen, 2011. "Finnish incomes policy as corporatist political exchange: development of social capital and the social wage," Transfer: European Review of Labour and Research, , vol. 17(4), pages 515-531, November.

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