Business Diversification and the Strategic Design of Union Wage Contracts

This paper analyses how a diversifying firm can strategically design its wage policy in order to gain market power in unionized markets. This paper shows that union power in the local market power in the local market coupled with the nature of the wage contractual agreement process-i.e. the type of bargaining scope and structure- are key determinants as whether the diversifying firm chooses to be unionized and strategically adopts cost raising strategies.

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Year of publication:	1994-08-01
Authors:	Bughin, Jacques ; Vannini, Stefano
Institutions:	Institut de Recherche Économique et Sociale (IRES), École des Sciences Économiques de Louvain
Subject:	multi-market contact \| cost raising strategies \| multinational enterprises \| union-firm bargaining \| unemployment

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Series:	Discussion Papers (IRES - Institut de Recherches Economiques et Sociales).
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) Number 1995013 1 pages long
Classification:	F23 - Multinational Firms; International Business ; J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; J51 - Trade Unions: Objectives Structure, and Effects ; L20 - Firm Objectives, Organization, and Behavior. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004984961