S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, School of Business, Economics and Law, University of Gothenburg Working Papers in Economics

No 625:
Why Unions Reduce Wage Inequality, II: The Relation between Solidarity and Unity

Johan Stennek ()

Abstract: This paper demonstrates that the decisions by workers of different skills to unite to form industry unions is closely linked to the egalitarian wage policies that such unions pursue. These results help interpret the stylized facts about unions: that they not only increase wages but also reduce wage inequality. I also demonstrate that political caps on collectively negotiated minimum wages may reduce the wages of all blue-collar workers (cf. “internal devaluation”), but that they may also cause unions to disintegrate in the long run.

Keywords: inequality; wage differences; minimum wages; trade unions; collective negotiations; strategic commitment; (follow links to similar papers)

JEL-Codes: J31; J51; (follow links to similar papers)

33 pages, September 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

40533    HTML file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Marie Andersson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:gunwpe:0625 This page was generated on 2015-09-07 12:09:16