Please use this identifier to cite or link to this item:
Título : Macroeconomic Effects In Centralized And Decentralized Wage Setting Systems
Autor : Sorolla, Valeri
Palabras clave : Centralized and Decentralized Collective Bargaining
Trade Unions
Fecha de publicación : 23-May-2000
Citación : UFAE and IAE Working Papers
Resumen: We present a model of a monetary economy with two systems of wage setting: a decentralized system and a centralized system. In the decentralized system there is a union per firm that sets the firm's wage. In the centralized system there is a unique union that sets a common wage for all firms. We find that, when there is unemployment, the equilibrium wage set in the centralized wage setting system is lower than the one set in the decentralized wage setting and that both depend on the size of the unemployment benefit and on the degree of pro-workerism of the government. When the unemployment benefit is a given quantity, we find that monetary policy has real effects in both systems and implies nominal wage rigidity in the centralized system. On the contrary, when the unemployment benefit grows with the size of the economy, monetary policy has no real effects and implies real wage rigidity in both systems.
Appears in Collections:(IAE) Informes y documentos de trabajo

Files in This Item:
File Description SizeFormat 
45900.pdf2,39 MBAdobe PDFView/Open
Show full item record

Items in Digital.CSIC are protected by copyright, with all rights reserved, unless otherwise indicated.