Non-electoral representation: trade-unions and business associations - trade union representation

3 important questions on Non-electoral representation: trade-unions and business associations - trade union representation

What is a collective action problem when thinking about trade union representation?

Free-riding. Only a small percentage of the workers are members of a trade union, but almost all of the workers are protected by its actions because of the collective agreements

What is the insider-outsider gap?

There are people with temporary and permanent contracts. Those with permanent contracts are mostly represented by labor parties, and not so much the ones with the temporary contracts. The insiders want to protect their own jobs, and the ones with the temporary contracts cannot get in because those with permanent ones are occupying the jobs

How did the insider-outsider gap come about?

In the 1960s and 1970s there were strong trade unions and a post-war consensus with high protection of the workers. In the 1980s and 1990s this was no longer preferable for the employers. The next step was to use more flexible contracts and build a welfare state to help those who did lose their job

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo