We apply a model with two types of labour where each group decides on whether it prefers to be represented by an independent craft-specific labour union or by a joint union. Applying the asymmetric Nash bargaining solution, we find that it is beneficial for at least one group of labourers to...

This paper documents the existence and main patterns of inter-industry wage differentials across a large number of industries for eight EU countries at two points in time (in general 1995 and 2002) and explores possible explanations for these patterns. The analysis uses the European Structure of...

We examine why employers use temporary agency and contract company workers and the implications of these practices for the wages, benefits, and working conditions of workers in low-skilled labor markets. Through intensive case studies in manufacturing (automotive supply), services (hospitals),...

This paper uses the British Household Panel Survey to investigate when seniority is rewarded by automatic incremental scales. Scales are seen as an alternative to individual merit pay. They are likely to be used when individual productivity is hard to measure, when firms provide all workers with...

In this paper we develop a theory of union bargaining power based on firm-specific skills acquired by the insider work-force. We show that unions increase the bargaining power of insiders only in states of the world in which the firm would like to retain insiders but not hire outsiders. Union...

Partnership in coercion is defined as cooperation between trade unions and employers at the expense of workers’ interests. It differs from coercive partnership by trade unions’ not mandatory but willing participation for furtherance of their own interests that are detached from those of...

This paper provides an empirical investigation into the relationship between ex ante U.S. labor contract durations and uncertainty over the period 1970 to 1995. We construct measures of inflation uncertainty as well as aggregate nominal and real uncertainty. The results not only corroborate...

Die Studie analysiert die Ursachen von Lohnrigiditäten, darunter Tarifverträge, Effizienzlöhne, implizite Kontrakte und Insider-Outsider-Verhalten, auf der Basis einer schriftlichen Befragung von 801 Unternehmen und stellt einen Vergleich mit US-amerikanischen Ergebnissen an. Unternehmen...

The paper surveys unemployment policies for advanced market economies and evaluates them by examining the predictions of the underlying macroeconomic theories. The basic idea is that, for the most part, different unemployment policy prescriptions rest on different macroeconomic theories, and our...

We offer a unified framework to analyse the determination of employment, employee effort, wages, and profit sharing when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating efficiency-wage...