Arbeitspapier

Living wage', class conflict and ethnic strife

We examine how group-specific differences in reservation wage, arising due to asymmetries in social entitlements, impact on distribution via the joint determination of class conflict between workers and employers, and 'ethnic' conflict among workers. We model a two-dimensional contest, where two unions, representing different sections of workers, jointly but non-cooperatively invest resources against employers in enforcing an exogenously given rent, while also contesting one another. The rent arises from a 'living' wage, set above reservation wage rates via labour regulations. We show that high reservation wage workers gain, and employers lose, from better social entitlements for low reservation wage workers. The latter however benefit, with employers and against the former, from weak labour regulations. When minority/immigrant workers are marginalized both in the labour market and in non-wage entitlements, improving job access and expanding 'social support' has contradictory effects on class and ethnic conflicts. 'Trade unionism', i.e. political articulation of shared economic interests alone, appears insufficient to temper ethnic conflicts among workers.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3631

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Thema
Class conflict
ethnic conflict
living wage
labour regulation
social entitlement
affirmative action
Distribution
Lohndifferenzierung
Anspruchslohn
Betrieblicher Konflikt
Ethnische Gruppe
Arbeitskonflikt
Gewerkschaft
Klassenkampf
Theorie

Ereignis
Geistige Schöpfung
(wer)
Dasgupta, Indraneel
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
URN
urn:nbn:de:101:1-20080820161
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Dasgupta, Indraneel
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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