Template-type: ReDIF-Paper 1.0
Author-Name: Javier Andrés 

Author-Workplace-Name: Departamento de Análisis Económico. Universidad de Valencia. 

Title: Wage and strikes determination in an economy with two trade unions. A differential game approach 
Abstract: The process of wage determination is one of the most important institutional features of an economy. It determines 
	the response to exogenous shocks and affects the long run perfomance as far as employment is concerned. For most western 
	European countries the role of unions in that process is very important, regardless the size of the unions itself. It 
	has become fashionable the explicit consideration of the unions both in theoretical and empirical macroeconomics. In 
	this papel, a very particular issue of a unionized labour market is analyzed; We shall study an economy with several 
	unions, and consider the different wage/employment outcomes with result from alternative strategic behaviour of those 
	(rational) unions. The model adopts a differential game format in wich each union choses its policy instrument, taking 
	in account the (passive) response of the employer (through the labour demand) and the existence of other union(s) operating 
	in the same firm. The state variable is the wage level; its dynamic is driven by the instruments choosen by the union plus some 
	exogenos factors wich determine the relative bargaining power of firm and unions.

Keywords: Salarios, Wage, Sindicatos, Unions.

Length: 67 pages 
Creation-Date: 1987 
Number: 87-03 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra87-03.txt
File-URL: https://eprints.ucm.es/id/eprint/21098/1/8703.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:87-03