EconPapers    
Economics at your fingertips  
 

The Struggle for Rents in a Schumpterian Economy

Henri de Groot ()

No 1996-51, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: This paper develops a two-sector endogenous growth model with a dual labour market. Trade unions strive for the extraction of as high a rent as possible from the growth generating imperfectly competitive primary sector. This union behaviour results in a non-competitive wage differential between the primary and secondary (perfectly competitive) sector. The consequence of this distortion is the coming about of wait unemployment, i.e., unemployed queuing for high-paid jobs. Employment and growth are negatively dependent on the relative strength of the union. An increase in concentration in the high-tech sector is good for growth and employment.

Keywords: endogenous growth; trade unions; unemployment; dual labour markets; non-competitive wage differentials (search for similar items in EconPapers)
JEL-codes: E24 J21 J51 O41 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://pure.uvt.nl/ws/portalfiles/portal/524453/51.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tiu:tiucen:403dca21-bc0e-486b-9a41-a106d535e4d6

Access Statistics for this paper

More papers in Discussion Paper from Tilburg University, Center for Economic Research
Bibliographic data for series maintained by Richard Broekman ().

 
Page updated 2019-07-20
Handle: RePEc:tiu:tiucen:403dca21-bc0e-486b-9a41-a106d535e4d6