Consider the Calmfors and Driffill (1988) model of centralization of wage bargaining and unemployment. They argue that unions operating at the individual firm level have limited market power while those at the sectoral level can exert some market power but ignore the macroeconomic implications of their actions. Use relevant illustrations to discuss why at the national level unions take into consideration the macroeconomic implications of their actions
Consider the Calmfors and Driffill (1988) model of centralization of wage bargaining and unemployment. They argue that unions operating at the individual firm level have limited market power while those at the sectoral level can exert some market power but ignore the macroeconomic implications of their actions. Use relevant illustrations to discuss why at the national level unions take into consideration the macroeconomic implications of their actions
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter19: Labor And Entrepreneurship: The Human Inputs
Section: Chapter Questions
Problem 7DQ
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Consider the Calmfors and Driffill (1988) model of centralization of wage bargaining and
unemployment. They argue that unions operating at the individual firm level have limited
market power while those at the sectoral level can exert some market power but ignore the
the national level unions take into consideration the macroeconomic implications of their
actions
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