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dc.contributor.authorStrifler, Matthiasen_US
dc.contributor.authorBeissinger, Thomasen_US
dc.date.accessioned2012-08-23en_US
dc.date.accessioned2012-09-06T12:59:20Z-
dc.date.available2012-09-06T12:59:20Z-
dc.date.issued2012en_US
dc.identifier.piurn:nbn:de:bsz:100-opus-7579en_US
dc.identifier.urihttp://hdl.handle.net/10419/62140-
dc.description.abstractWe 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_US
dc.language.isoengen_US
dc.publisherUniv. Hohenheim, Forschungszentrum Innovation und Dienstleistung Stuttgarten_US
dc.relation.ispartofseriesFZID Discussion Papers 56-2012en_US
dc.subject.jelJ51en_US
dc.subject.jelJ64en_US
dc.subject.jelE24en_US
dc.subject.ddc330en_US
dc.subject.keywordLabor Unionsen_US
dc.subject.keywordFairnessen_US
dc.subject.keywordWage Rigidityen_US
dc.subject.keywordWage Flexibilityen_US
dc.subject.keywordWage Stickinessen_US
dc.subject.keywordWage-Setting Curveen_US
dc.subject.keywordWage-Setting Processen_US
dc.subject.keywordUnemploymenten_US
dc.titleFairness considerations in labor union wage setting: A theoretical analysisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn722179375en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:fziddp:562012-
Appears in Collections:FZID Discussion Papers, Universität Hohenheim

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