research
Is there any scope for corporatism in stabilization policies?
- Publication date
- Publisher
Abstract
This paper studies corporatism as the outcome of bargaining between the government and a representative labor union. We show that if negotiations between these two parties only relate to macroeconomic stabilization, corporatism can never be beneficial to both parties. As corporatist policies are nevertheless commonly observed in this context, we discuss possible explanations that reconcile the theory with actual observations. The policy implications of these explanations are also discussed.Social pacts; axiomatic bargaining; unions; issue linkage