Union, Efficiency of Labour and Endogenous Growth

Chandril Bhattacharyya () and Manash Ranjan Gupta

Hitotsubashi Journal of Economics, 2020, vol. 61, issue 2, 170-202

Abstract: This paper investigates the growth effect of unionization, with a special focus on the ʻEfficiency Wage Hypothesisʼ and on the human capital formation financed publicly by taxation. The employment level becomes independent of the public policy parameters and of the labour market institution parameters when the government chooses the growth rate maximizing tax rate. The growth effect of unionisation is found to be independent of the labour unionʼs orientation in its preference structure. It depends on the net efficiency of the worker. The growth effect of unionisation is different from the corresponding welfare effect.

Keywords: labour union; efficiency wage hypothesis; human capital formation; income tax; endogenous growth (search for similar items in EconPapers)
JEL-codes: H21 H52 J24 J31 J51 O41 (search for similar items in EconPapers)
Date: 2020
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/70498/HJeco0610201700.pdf

Related works:
Working Paper: Union, efficiency of labour and endogenous growth (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjec:v:61:y:2020:i:2:p:170-202

DOI: 10.15057/hje.2020008

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