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This paper presents a wage bargaining model in which the employer and employee are each uncertain about the other's reservation wage. Under specified circumstances, the model's equilibrium is shown to involve unilateral wage setting and inefficient labor turnover. In addition, aggregate demand...
Persistent link: https://www.econbiz.de/10012477733
In this paper we focus our attention on the question of whether union/nonunion differences in nonwage outcomes can, in fact, be explained in terms of standard price-theoretic responses to real wage effects, as opposed to the real effect of unionism on economic behavior. We reach three basic...
Persistent link: https://www.econbiz.de/10012478274
Some workers bargain with prospective employers before accepting a job. Others face a posted wage as a take-it-or-leave-it opportunity. Theories of wage formation point to substantial differences in labor-market equilibrium between bargained and posted wages. We surveyed a representative sample...
Persistent link: https://www.econbiz.de/10012462619
Most economists maintain that the labor market in the United States is 'tight' because unemployment rates are low. They infer from this that there is potential for wage-push inflation. However, real wages are falling rapidly at present and, prior to that, real wages had been stagnant for some...
Persistent link: https://www.econbiz.de/10013361977
productivity growth, higher markups in product markets, and spending declines resulting from tighter lending standards at financial …
Persistent link: https://www.econbiz.de/10012456445
U.S. labor and total-factor productivity growth slowed prior to the Great Recession. The timing rules out explanations … intensively, consistent with a return to normal productivity growth after nearly a decade of exceptional IT-fueled gains. A … calibrated growth model suggests trend productivity growth has returned close to its 1973-1995 pace. Slower underlying …
Persistent link: https://www.econbiz.de/10012458418
largest was a shortfall of 3.5 percentage points in total factor productivity. The fourth was a shortfall of 2.4 percentage … in the labor market and pessimistic about reversing the declines in total factor productivity and the part of the …
Persistent link: https://www.econbiz.de/10012458482
does not decline as much as output, resulting in large falls in measured productivity -- and from a theoretical perspective … productivity during a financial crises as the result of changes in the underlying technology of the economy, the efficiency with … changes in productivity, government spending, the terms of trade, and a country's international investment position. We apply …
Persistent link: https://www.econbiz.de/10012461106
We study the effects of the unionization of faculty at Canadian universities from 1970-2022 using an event-study design. Using administrative data which covers the full universe of faculty salaries, we find strong evidence that unionization leads to both average salary gains and compression of...
Persistent link: https://www.econbiz.de/10014512131
increases in concentrated institutional ownership on employment, wages, shareholder returns, and labor productivity. Consistent … shareholder returns but no improvements in labor productivity, suggesting that shareholder power mainly reallocates rents away …
Persistent link: https://www.econbiz.de/10013334421