Trade Union Objectives and Economic Growth

Andreas Irmen and Berthold Wigger ()

No 3027, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers' marginal propensity to save exceeds that of capitalists. We make this point in an overlapping generations framework with unionized labour. Considering a monopoly union that cares for wages and employment, we determine a range of trade union objectives and characterize the aggregate technology so that the union's policy spurs per capita income growth and increases the welfare of all generations that adhere to the union.

Keywords: Trade union; Overlapping generations; Factor shares; Endogenous technical change; Employment (search for similar items in EconPapers)
JEL-codes: D91 E25 J51 O41 (search for similar items in EconPapers)
Date: 2001-10
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Related works:
Journal Article: Trade Union Objectives and Economic Growth (2002)
Working Paper: Trade Union Objectives and Economic Growth (2001)
Working Paper: Trade Union Objectives and Economic Growth (2000)
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