Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/47538 
Year of Publication: 
2001
Series/Report no.: 
Tübinger Diskussionsbeiträge No. 206
Publisher: 
Eberhard Karls Universität Tübingen, Wirtschaftswissenschaftliche Fakultät, Tübingen
Abstract: 
We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in the supply of human capital, however, on the one hand induces firms to substitute high-skilled labour for jobs previously performed by low-skilled individu- als and on the other hand, increases the demand for low-skilled labour as their productivity rises due to the higher skill-intensity. Depending on which effect dominates, either a positive or negative relationship between the growth and unemployment rates results.
Subjects: 
Unions
Umemployment
Growth
Heterogenerous Labour
JEL: 
J31
J51
O31
O41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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