Fairness considerations in labor union wage setting : a theoretical analysis

Strifler, Matthias; Beißinger, Thomas

Fairness considerations in labor union wage setting : a theoretical analysis

dc.contributor.author	Strifler, Matthias	de
dc.contributor.author	Beißinger, Thomas	de
dc.date.accessioned	2024-04-08T08:47:20Z
dc.date.available	2024-04-08T08:47:20Z
dc.date.created	2012-08-23
dc.date.issued	2012
dc.description.abstract	We consider a theoretical model in which unions not only take the outside option into account, but also base their wage-setting decisions on an internal reference, called the fairness reference. Wage and employment outcomes and the shape of the aggregate wagesetting curve depend on the weight and the size of the fairness reference relative to the outside option. If the fairness reference is relatively high compared to the outside option, higher wages and lower employment than in the standard model will prevail. If hit by an adverse technology shock, the economy will then react with a stronger downward adjustment in employment, whereas real wages are more rigid than in the standard model. With a low fairness reference the opposite results are obtained. An increase in the fairness weight amplifies the deviations of wages and employment from those of the standard model. It also leads to an increase in the degree of real wage rigidity if the fairness reference is high and an increase in the degree of real wage flexibility if the fairness reference is low. Thus, higher wages go hand in hand with more pronounced wage stickiness.	en
dc.identifier.swb	370277120
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5622
dc.identifier.urn	urn:nbn:de:bsz:100-opus-7579
dc.language.iso	eng
dc.relation.ispartofseries	FZID discussion papers; 56
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Labor unions	en
dc.subject	Fairness	en
dc.subject	Wage rigidity	en
dc.subject	Wage flexibility	en
dc.subject	Wage stickiness	en
dc.subject	Wage-setting curve	en
dc.subject	Wage-setting process	en
dc.subject	Unemployment	en
dc.subject.ddc	330
dc.subject.gnd	Lohnbildung	de
dc.subject.gnd	Arbeitslosigkeit	de
dc.subject.gnd	Lohntheorie	de
dc.title	Fairness considerations in labor union wage setting : a theoretical analysis	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	7	de
local.faculty.number	3	de
local.institute.number	795	de
local.institute.number	520	de
local.opus.number	757
local.series.issueNumber	56
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Landesanstalten	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

Files

Original bundle

Now showing 1 - 1 of 1

Name:: fzid_dp_2012_56_Beissinger.pdf
Size:: 945.2 KB
Format:: Adobe Portable Document Format
Description:: Open Access Fulltext

Download

Collections

Forschungszentrum Innovation und Dienstleistung