A Keynesian reformulation of the WS-PS model: Keynesian unemployment and Classical unemployment
Nicolas Piluso () and
Gabriel Colletis ()
Additional contact information
Gabriel Colletis: Université de Toulouse I Capitole
Economia Politica: Journal of Analytical and Institutional Economics, 2021, vol. 38, issue 2, No 2, 447-460
Abstract The orthodox theory of wage negotiations considers that the trade union monopoly causes a rigidity of real wages which is, itself, the cause of unemployment. The model of this negotiation ("Nash bargaining") only considers situations where negotiations between union and firm succeed. In this article, we attempt to read the WS-PS model from a Keynesian point of view. Our model reflects the fact that successful negotiation is only one case among other situations, including failure where the union expresses a claim that is not necessarily satisfied. Although, in situations close to full employment, there is a bargaining mechanism by which unions and firms reach an agreement, this is not the case in times of massive unemployment. In the latter situation, employment is unilaterally determined by firms, on the basis of previous demand.
Keywords: Bargaining; Trade unions; Wages; Unemployment; Previous demand (search for similar items in EconPapers)
JEL-codes: J01 J60 J88 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s40888-021-00222-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: A Keynesian reformulation of the WS-PS model: Keynesian unemployment and Classical unemployment (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:epolit:v:38:y:2021:i:2:d:10.1007_s40888-021-00222-y
Ordering information: This journal article can be ordered from
Access Statistics for this article
Economia Politica: Journal of Analytical and Institutional Economics is currently edited by Alberto Quadrio Curzio
More articles in Economia Politica: Journal of Analytical and Institutional Economics from Springer, Fondazione Edison
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().