Prices, Employment and Pro-Labor Governments.
In this analysis of a game between a government and a union, the welfare function of the union depends on the welfare of the workers and the welfare function of the government depends on the welfare of the workers and the owners. A government is said to be more proworker if it gives more weight to the workers' welfare in its utility function. We study the effect on a more proworker government on the equilibrium of the economy. A more proworker government is found to induce a lower wage, lower unemployment, lower prices, higher welfare for the workers and, typically, lower welfare for the owners. Copyright 1995 by The editors of the Scandinavian Journal of Economics.
Year of publication: |
1995
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Authors: | Sorolla i Amat, Valeri |
Published in: |
Scandinavian Journal of Economics. - Wiley Blackwell, ISSN 1467-9442. - Vol. 97.1995, 2, p. 261-79
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Publisher: |
Wiley Blackwell |
Saved in:
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