Union, efficiency of labour and endogenous growth

Article Type

Research Article

Publication Title

Hitotsubashi Journal of Economics

Abstract

This paper investigates the growth effect of unionization, with a special focus on the 'Efficiency Wage Hypothesis' and on the human capital formation financed publicly by taxation. The employment level becomes independent of the public policy parameters and of the labour market institution parameters when the government chooses the growth rate maximizing tax rate. The growth effect of unionisation is found to be independent of the labour union's orientation in its preference structure. It depends on the net efficiency of the worker. The growth effect of unionisation is different from the corresponding welfare effect.

First Page

170

Last Page

202

DOI

10.15057/hje.2020008

Publication Date

12-1-2020

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