Resource title

Earnings-Related Unemployment Benefits in a Unionised Economy

Resource image

image for OpenScout resource :: Earnings-Related Unemployment Benefits in a Unionised Economy

Resource description

We show that a stronger earnings relationship of unemployment compensation reduces wages and increases employment in an economy in which wages are determined by a trade union that maximises the rent from unionisation. The opposite result applies for a utilitarian union. Using manufacturing and non-manufacturing data for 16 OECD countries, estimates suggest that a 10% increase in the earnings relationship is associated with a 1.9% fall in manufacturing wages, a 0.6% reduction in non-manufacturing wages and a 7.3% reduction in unemployment.

Resource author

Jakob B. Madsen, Laszlo Goerke

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20636

Resource license

Adapt according to the presented license agreement and reference the original author.