Unionised labour market, environment and endogenous growth

Abstract

In this paper, a model of endogenous economic growth is developed with special focus on the interaction between unionized labour market and environmental pollution. We introduce a trade union; and use both 'Efficient Bargaining' model and 'Right to Manage' model to solve the negotiation problem. Environmental pollution is the result of production; and the labour union bargains not only for wage and employment but also for the protection of environment. We derive properties of optimum income tax policy while financing abatement expenditure; and also analyse the effects of unionization on the level of employment and on growth rate. It appears that the optimum rate of income tax varies inversely with the relative bargaining power of the labour union. An increase in the relative bargaining power of the labour union may enhance employment in 'Efficient Bargaining' model if the labour union is highly employment oriented. However, the union always forces the firm to raise the spending rate for environment protection. So, unionisation may raise the growth rate, even if the first effect is negative, but the second effect dominates the first effect.

The relationship between tax revenue and economic growth in Indonesia through the endogenous growth model approach

“…Strong evidence from this study states that the variable tax revenue is one factor that influences A or TFP. Several previous researchers who justified the variable tax revenue as an important factor affecting economic growth seen from endogenous growth models were Agell & Persson (2000), Arvin et al (2021), Bhattacharyya & Gupta (2021), Christie (2014), Curtis et al, (2022), Fosu & Magnus (2006), Fu & Le Riche (2021, Gao (2020), Ghazo et al (2021), Gurdal et al (2021), Irmen & Tabaković (2017), Jiang & Jiang (2014), Kim & Park (2020), Miyashita (2023), Mtui & Ndanshau (2020), Myles (2000), Padovano & Galli (2001), Sabir (2019), Takumah & Iyke (2017), Todtenhaupt & Voget (2021), and Turnovsky (1999.…”

“…From the explanation above, there are two different opinions on the relationship between taxation and economic growth, so proper research is needed to examine taxation's nature and real effects on economic growth by connecting theory with data (Myles, 2000). Some of the results of recent empirical studies analyzing the relationship and impact of taxation on economic growth, such as Adhikari et al (2021), Akimova et al (2018), Alesina & Ardagna (2009), Alzyadat & Al-Nsour (2021), Arvin et al (2021), Atems (2015), Auerbach (2018), Aydin & Esen (2019), Bhattacharyya & Gupta (2021), Chen et al (2022), Dackehag & Hansson (2012), Guo & Shi (2021), Gurdal et al (2021), Ho et al (2023), Ilzetzki (2018), Kavese & Phiri (2020), Kim & Park (2020), Maganya (2020), Mtui & Ndanshau (2020), Neog & Gaur (2020a), Neog & Gaur (2020b), Phuong et al (2022), Ojede & Yamarik (2012), Özker (2020), Sabir (2019), Takumah & Iyke (2017), Vatavu et al (2019, Wu et al (2017), Zheng & Severe (2016), and Zwick & Mahon (2017) find evidence that is non-consensus with one another.…”

“…The extensive model defines factors other than production factors (capital and labor) as factors that influence output or economic growth, such as financial, political, policy, and institutional factors (Gao, 2020;Kim & Park, 2020;Liu & Liu, 2022;Wu et al, 2018). The use of the tax revenue variable as a factor influencing TFP has also been used by other researchers, such as Agell & Persson (2000), Arvin et al (2021); Bhattacharyya & Gupta (2021), Christie (2014), Curtis et al, (2022), Fu & Le Riche (2021, Gao (2020), Ho et al (2023) Irmen & Tabaković (2017), Jiang & Jiang (2014), Kim & Park (2020), Maganya (2020), Miyashita (2023), Mtui & Ndanshau (2020), Myles (2000), Padovano & Galli (2001), Sabir (2019), Todtenhaupt & Voget (2021), and Turnovsky (1999. With the current conditions, where capital moves quickly, job specialization, and technology move rapidly, the tax structure must be competitive to attract capital, job specialization, and technology which are important elements to maximize economic growth.…”

Labour union’s website accessibility and information rights fulfilment among workers with disability

“…For instance, South Korea's labour union is essential in voicing their grievance regarding the organisation's commitment to improvement and job satisfaction (Choi, 2018). In addition, the labour union negotiates with the company to enhance workers' health conditions and work safety in the workplace (Bhattacharyya & Ranjan Gupta, 2021).…”

Time zone difference, skill formation and corrupt informal sector: the role of virtual trade

“…We thank the anonymous referee for suggesting us to provide the determination process. There are some other interesting papers such asLingens (2003),Bhattacharyya and Gupta (2016),Chattopadhyay (2018), etc., that consider the determination of wage through bargaining.…”