Columbia Economics Review
- Hits: 132
Carbon Emissions and the Bargaining Power of Trade Unions and Firms
This paper looks at the bargaining problem and creates a model that allows a social welfare-conscious government to transfer bargaining power between the trade union and firm, therefore directly affecting the level of pollution-intensive capital present within the economy. In doing so, I will address the social welfare issues of externalities caused by the firm and its bargaining with trade unions. The focus will primarily be on carbon dioxide (CO2) as it is the basis of many scientific studies of pollution. As governments implement schemes to cap carbon emissions, scrap pollutant capital, and promote greener technologies — all under the pressure created by global warming—this paper focuses on whether trade unions are obstructing these goals. I also investigate how governments can change the unions’ bargaining power to reduce these externalities. I will conclude that in a world with “highly polluting” capital, the government transfers the bargaining power to the firm such that the firm can deflate wages and employ more labor and less pollution-intensive capital. Using an altered pollution function which is “strongly decreasing,” I find the opposite results: more power is transferred to the trade union, and the inflated wages force the firm to employ more capital.
- Hits: 107
Is a Lost Generation of Young Workers an Evitable Outcome of Recession?
Youth unemployment has been one of the principal concerns of the Great Recession. In the UK, for instance, between 2008 and 2010, 74 percent of the decrease in employment fell on workers aged 16 to 24, but as a group they represented less than 20 percent of the working age population (Bell & Blanchflower, 2010).
- Hits: 165
Gender Inequality and Women’s Soccer Success
The aim of this paper is to understand the impact of gender inequality in the differential success of various countries’ women’s soccer programs over the past decade. Gender inequality is an important topic in the study of modern economies. Although gender inequality has many adverse effects, it creates two main problems. First, gender inequality unfairly limits the opportunities of fifty-one percent of any country’s population in a way that most would consider arbitrary and unjust. Second, gender inequality places constraints on GDP and GDP growth due to labor inefficiency such that countries experience losses in the real economy. Dollar and Gatti (1999) assert that if one interprets gender inequality as evidence of either prejudice or market failure (or both), the gap between males and females is effectively a distortionary tax that has a negative impact on GDP and economic growth. This problem is well studied, and many others such as Boserup (1970) and Duflo (2010) have gone on to characterize and quantify the actual impact empirically. Hence, there are clear arguments for reducing gender inequality on the grounds of both social justice and economic growth. However, the impacts of gender inequality are not always obvious and in certain arenas, such as sports, estimating the negative impact of gender inequality can become particularly challenging.
- Hits: 118
Lebron James and the Impact of the Sports Superstar
On Friday, November 6th, 2009, the New York Knicks played the Cleveland Cavaliers. Madison Square Garden was packed and the energy was reminiscent of the 1990s when Ewing and the Knicks battled Jordan and the Bulls. Although the Knicks 2008-2009 season resulted in a 39 percent win rate, only slightly better than the Eastern Conference’s worst team, the Washington Wizards, this game held far greater weight than any early November regular season game had in decades: it was a mere 236 days before Lebron James would become a free agent.