What is it about?
Trade unions care about a number of things such as wages, unemployment and benefits. They set priority target levels of these goals. For instance, they might set a target level of wages for union members. This behaviour has important effects for the labour market and for the economy as a whole.
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Why is it important?
If trade unions set specific target levels of their goals, then wages do not change easily. This means that other important economic variables are also affected. The paper provides an additional reason why overall employment and output increase significantly during an economic boom.
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This page is a summary of: Trade Union Priorities and Wage Rigidity, Labour, September 1994, Wiley, DOI: 10.1111/j.1467-9914.1994.tb00177.x.
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