Wages and Employment under Trade Unionism: Microeconomic Models and Macroeconomic Applications

Abstract

The first part of this paper is a critical survey of microeconomic research into behavioural models of trade unionism. Although certain formulations of union objectives and models of wage and employment determination in unionized markets have found favor with economists, unfortunately only a little is known about their empirical relevance. The second part of this paper deals with the daunting problems of applying these models at the macroeconomic level. One such model is estimated with data from Sweden’s mining and manufacturing sector from 1968 to 1982. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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