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UNION, EFFICIENCY OF LABOUR AND ENDOGENOUS GROWTH
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UNION, EFFICIENCY OF LABOUR AND ENDOGENOUS GROWTH
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UNION, EFFICIENCY OF LABOUR AND ENDOGENOUS GROWTH
UNION, EFFICIENCY OF LABOUR AND ENDOGENOUS GROWTH
Journal Article

UNION, EFFICIENCY OF LABOUR AND ENDOGENOUS GROWTH

2020
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Overview
This paper investigates the growth effect of unionization, with a special focus on the ʻEfficiency Wage Hypothesisʼ 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 unionʼs 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.