De Pinto, Marco; Michaelis, Jochen - 2018
Empirical evidence suggests that the bargaining power of trade unions differs across firms and sectors. Standard models … heterogeneity into a Melitz (2003) type model. Union bargaining power is assumed to be firm-specific and varies with firm … productivity. This framework allows us to re-analyze the labor market effects of (i) a symmetric increase in the bargaining power …