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The Rise and Fall of Unionised Labour Markets

A Political Economy Approach

Bibliographic Data

ID9708535
AuthorsWoojin Lee (0000-0002-7082-5687, University of Massachusetts Amherst), John E Roemer (0000-0001-9049-5083, Yale University)
Year2005
Volume115
Issue500
Pages28-67
Publication date2005-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2004.00959.x
OpenAlexW2152867968
LanguageEN
Citations received6
References cited31

Studying a model where trade unions interact with endogenously formed partisan political parties, we explain changing political preferences for and against the unionised labour market regime. We focus on the changes in coalition formation between unskilled and moderately skilled workers, which in turn depend on inequality among workers. When inequality is either very low or very high, moderately skilled workers form a political coalition with unskilled workers to support a unionised labour market regime. In other cases, the economic interest of the moderately skilled workers is more in line with that of highly skilled workers and capital owners to support a competitive labour market regime. Different societies have different labour market regimes or wage determination mechanisms. Some, such as the US, have relatively unregulated labour markets, while others, such as the Northern European countries, have strong trade unions, where wages are set by a collective bargaining procedure mediated through the unions. As Table 1 shows, union density in 1990 ranged over almost the entire spectrum, from 93.7 % in Sweden to 9.3 % in France. Union coverage, defined as the proportion of wage and salary workers covered by terms of a collective bar

Capital (architecture · Economics · Inequality · Labor relations · Labour economics · Market economy · Political science · Politics · Secondary labor market · Split labor market theory · Labor market dynamics and wage inequality · Labor Movements and Unions · Social Policy and Reform Studies

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Unique citing works6
Citations per year0,3
Citation span2006 - 2017 (12)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 6

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