IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-08596-5_16.html
   My bibliography  Save this book chapter

Dynamics of Unemployment, Vacancies and Real Wages with Trade Unions

In: Trade Unions, Wage Formation and Macroeconomic Stability

Author

Listed:
  • Christopher A. Pissarides

    (London School of Economics)

Abstract

This paper considers the response of wages, unemployment and vacancies to shocks when the number of job slots and real wages are determined by a Nash bargain between a firm and a small union. Unemployment and vacancies co-exist because of search considerations. There is a unique “natural” unemployment rate which ensures that every firm-union’s bargained wage is stationary. Shocks that are eventually absorbed by wages cause deviations of unemployment from its natural rate, because the firm-union initial response to a shock is to change vacancies (and possibly wages), which cause changes in unemployment flows via the search process.

Suggested Citation

  • Christopher A. Pissarides, 1986. "Dynamics of Unemployment, Vacancies and Real Wages with Trade Unions," Palgrave Macmillan Books, in: Lars Calmfors & Henrik Horn (ed.), Trade Unions, Wage Formation and Macroeconomic Stability, pages 244-261, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-08596-5_16
    DOI: 10.1007/978-1-349-08596-5_16
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:palchp:978-1-349-08596-5_16. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.