Trade Unions' decisions and their overall economic consequences.
Photo by Jakayla Toney on Unsplash
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.
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.
The following have contributed to this page: Professor Stavros Andreas Drakopoulos