In search of economic well-being: Worker power and the effects of productivity, inflation, unemployment and global trade on wages in ten wealthy countries

Thomas J Volgy, John E. Schwarz, Lawrence E. Imwalle

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Theory: The theory addresses the forces that determine the real wages which workers receive. It is proposed that in the free market system, worker power plays a crucial mediating role between economic considerations involving labor supply and productivity, and the real wages available to workers in the economy. Hypotheses: In moderate and weak worker power countries, real wages will vary inversely with the labor supply in terms of domestic unemployment and international trade. In strong worker power countries, real wages will vary with changes in productivity and inflation. Methods: Separate regression analyses are developed for 10 countries varying in their level of worker power, over a 30 year time frame. Results: In moderate and weak worker power countries, changes in real wages were best predicted by levels of unemployment and changes in global trading. In strong worker power countries, changes in real wages were best predicted by changes in productivity and inflation, although in one case of a strong worker power country, a significant positive association occurred between global trading and real wages.

Original languageEnglish (US)
Pages (from-to)1233-1252
Number of pages20
JournalAmerican Journal of Political Science
Volume40
Issue number4
StatePublished - Nov 1996
Externally publishedYes

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real wages
inflation
unemployment
wage
productivity
well-being
worker
economics
labor supply
labor productivity
world trade
regression
economy
market

ASJC Scopus subject areas

  • Sociology and Political Science

Cite this

In search of economic well-being : Worker power and the effects of productivity, inflation, unemployment and global trade on wages in ten wealthy countries. / Volgy, Thomas J; Schwarz, John E.; Imwalle, Lawrence E.

In: American Journal of Political Science, Vol. 40, No. 4, 11.1996, p. 1233-1252.

Research output: Contribution to journalArticle

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