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overstate distortions caused by unions only holds in the special case of firm-level wage setting. If, however, the union is big …'s time preference whether static frameworks overrate or even underrate unions' distortions. …
Persistent link: https://www.econbiz.de/10010274766
This paper examines how collective bargaining through unions and workplace co-determination through works councils …
Persistent link: https://www.econbiz.de/10012425645
When employers face a trade-off between growing large and paying low wages—that is, when they have monopsony power—some productive employers will decide to acquire fewer customers, forgo sales, and remain small. These decisions have adverse consequences for aggregate labor productivity....
Persistent link: https://www.econbiz.de/10013353363
Using subjective information provided by manager respondents on the stance taken by the works council in company decision making, this paper investigates the association between a measure of works council dissonance or disaffection and plant closings in Germany, 2006-2015. The potential effects...
Persistent link: https://www.econbiz.de/10012052828
Using cross-country data, this paper investigates the relationship between workplace representation and strikes. Works councils are associated with reduced strike activity. However, where union members make up a majority of works councillors, such union-dominated councils experience greater...
Persistent link: https://www.econbiz.de/10011957176
The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a...
Persistent link: https://www.econbiz.de/10012581986
We study the descriptive and substantive representation of workers through worker representatives, focusing on the selection of German works council representatives and their impact on worker outcomes. Becoming a professional representative leads to substantial wage gains for the elected,...
Persistent link: https://www.econbiz.de/10015061987
This paper proposes an explanation of why union membership has been increasing in some occupations, despite the opportunity to freeride on traditional union benefits. I model membership as legal insurance whose demand increases with the perceived risk of allegations. Using media reports on...
Persistent link: https://www.econbiz.de/10011615917
whose participation is subsidized on a net basis. By creating implicit taxes on work, unions alleviate the labor …This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … unions can be desirable for income redistribution. Unions bargain with firms over wages in each sector and firms unilaterally …
Persistent link: https://www.econbiz.de/10011931938
This paper brings together the modern literatures on monopsony power and labor unions by empirically examining the … of unions as alleviating market failures induced by imperfect competition. To validate our findings and examine …
Persistent link: https://www.econbiz.de/10013177529