The Rise and Fall of Unionised Labour Markets: A Political Economy Approach

40 Pages Posted: 28 Dec 2004

See all articles by Woojin Lee

Woojin Lee

affiliation not provided to SSRN

John E. Roemer

Yale University - Department of Political Science; Yale University - Cowles Foundation

Abstract

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.

Suggested Citation

Lee, Woojin and Roemer, John E., The Rise and Fall of Unionised Labour Markets: A Political Economy Approach. Economic Journal, Vol. 115, No. 500, pp. 28-67, January 2005. Available at SSRN: https://ssrn.com/abstract=639743

Woojin Lee (Contact Author)

affiliation not provided to SSRN

John E. Roemer

Yale University - Department of Political Science ( email )

Box 208269
New Haven, DC 06520-8269
United States
203-432-5249 (Phone)
203-432-6196 (Fax)

HOME PAGE: http://pantheon.yale.edu/~jer39/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

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