Lai, Chung-Hui and Wang, Vey (2010): The effects of unionization in an R&D growth model with (In)determinate equilibrium.
Download (151kB) | Preview
This paper extends an R&D-based growth model of the Rivera-Batiz and Romer-type [Quarterly Journal of Economics 106 (1991) 531] endogenous growth model by embodying a union with elastic labor to investigate the effects of unionization on employment and growth by highlighting the essence of internal conflict within the union. It is shown that an increase in the union’s bargaining power or a union which is more employment-oriented boosts employment and economic growth when the balanced growth equilibrium is determinate. On the other hand, if the union is more wage-oriented, employment and economic growth are enhanced when the balanced growth equilibrium is indeterminate.
|Item Type:||MPRA Paper|
|Original Title:||The effects of unionization in an R&D growth model with (In)determinate equilibrium|
|Keywords:||Union, Collective bargaining, R&D, Indeterminacy, Economic growth|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J50 - General
|Depositing User:||Chung-Hui Lai|
|Date Deposited:||02. Jan 2011 19:10|
|Last Modified:||01. Jan 2016 02:29|
Aghion, P. and P. Howitt, (1992), “A Model of Growth through Creative Destruction,” Econometrica, 60, 323-351.
Benhabib, J. and R. Farmer, (1994), “Indeterminacy and Increasing Returns,” Journal of Economic Theory, 63, 19-41.
Boone, J., (2000), “Technological Progress, Downsizing and Unemployment,” Economic Journal, 110, 581-600.
Booth, A. L., (1995), The Economics of the Trade Union, Cambridge; New York: Cambridge University Press.
Bräuninger, M., (2000), “Wage Bargaining, Unemployment, and Growth,” Journal of Institutional and Theoretical Economics, 156, 646-660.
Chang, J. J., M. F. Shaw, and C. C. Lai, (2007), “A “Managerial” Trade Union and Economic Growth,” European Economic Review, 51, 365-384.
Clark, A., (1990), “Efficient Bargains and the McDonald-Solow Conjecture,” Journal of Labor Economics, 8, 502-528.
De Groot, H. L. F., (2001), “Unemployment, Growth, and Trade Unions,” Growth and Change, 32, 69-91.
Faini, R., (1999), “Trade Unions and Regional Development,” European Economic Review, 43, 457-474.
Grossman, G. M. and E. Helpman, (1991), Innovation and Growth in the Global Economy, Cambridge, MA: MIT Press.
Haruyama, T. and J. I. Itaya, (2006), “Do Distortionary Taxes Always Harm Growth,” Journal of Economics, 87, 99-126.
Haucap, J. and C. Wey, (2004), “Unionisation Structures and Innovation Incentives,” Economic Journal, 114, C149-C165.
Irmen, A. and B. U. Wigger, (2000), “Trade Union Objectives and Economic Growth,” Unpublished Manuscript, University of Mannheim.
Layard, R., S. Nickell, and R. Jackman, (1991), Unemployment: Macroeconomic Performance and the Labour Market, New York: Oxford University Press.
Lingens, J., (2003), “The Impact of a Unionised Labour Market in a Schumpeterian Growth Model,” Labour Economics, 10, 91-104.
Lingens, J., (2007), “Unions, Wage Setting, and Economic Growth,” Economic Modelling, 24, 167-188.
Lingens, J., (2009), “Union Wage Bargaining and the Incentive to Innovate,” Journal of Institutional and Theoretical Economics, 165, 260-280.
McDonald, I. M. and R. M. Solow, (1981), “Wage Bargaining and Employment,” American Economic Review, 71, 896-908.
Menezes-Filho, N. and J. Van Reenen, (2003), “Unions and Innovation: A Survey of the Theory and Empirical Evidence,” The International Handbook of Trade Unions, 293-335, Cheltenham, U.K. and Northampton, Mass.: Elgar.
Palokangas, T., (1996), “Endogenous Growth and Collective Bargaining,” Journal of Economic Dynamics and Control, 20, 925-944.
Palokangas, T., (2004), “Union-Firm Bargaining, Productivity Improvement and Endogenous Growth,” Labour, 18, 191-205.
Pelloni, A. and R. Waldmann, (2000), “Can Waste Improve Welfare?” Journal of Public Economics, 77, 45-79.
Rivera-Batiz, L. A. and P. M. Romer, (1991), “Economic Integration and Endogenous Growth,” Quarterly Journal of Economics, 106, 531-555.
Romer, P. M., (1990), “Endogenous Technological Change,” Journal of Political Economy, 98, 71-102.
Shaw, M. F., S. H. Chen, and J. J. Chang, (2005), “Trade Union, Fiscal Policy and Economic Growth: An Endogenous Growth Model with Equilibrium Unemployment,” Academia Economic Papers, 33, 323-350.
Ulph, A. M. and D. T. Ulph, (1994), “Labour Markets and Innovation: Ex-Post Bargaining,” European Economic Review, 38, 195-210.