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Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in … to adopt collective bargaining. We rationalize those stylized facts using a partial equilibrium model that allows us to … evaluate firms' value functions under individual or collective bargaining. Exporting further decreases average production costs …
Persistent link: https://www.econbiz.de/10013040479
Taxes and cash transfers reduce income inequality more in France than elsewhere in the OECD, because of the large size of the flows involved. But the system is complex overall. Its effectiveness could be enhanced in many ways, for example so as to achieve the same amount of redistribution at...
Persistent link: https://www.econbiz.de/10013315796
We analyze union behavior in a model with membership dynamics and compare the labor market outcomes to static union models. Based on empirical findings we modify standard models and show that the well-known result that static models overstate distortions caused by unions only holds in the...
Persistent link: https://www.econbiz.de/10013137869
efficiently according to the familiar Nash bargaining solution, we show that central negotiations lead to a lower employment level …
Persistent link: https://www.econbiz.de/10013072513
We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research. Furthermore, we show that a production mode with a...
Persistent link: https://www.econbiz.de/10012777827
credit market, loan contracts are negotiated between financiers and firms, both of which have bargaining power, while firms …
Persistent link: https://www.econbiz.de/10012778828
We analyze the following question associated with flexible outsourcing under imperfect domestic labour market: How does the implementation of profit sharing influence flexible outsourcing? We show that in general profit sharing has a negative effect on low skilled wage and thus an outsourcing...
Persistent link: https://www.econbiz.de/10012763993
We theoretically analyse the effects of sick pay and employees' health on collective bargaining, assuming that …
Persistent link: https://www.econbiz.de/10012977408
This paper analyzes unemployment insurance (UI) schemes in the presence of mobile workers and trade unions at industry or regional level that are capable of internalizing the effect of wage demands on UI contribution rates. We compare two types of existing UI systems. When UI is organized at...
Persistent link: https://www.econbiz.de/10013019042
This paper sets up a general oligopolistic equilibrium model with unionized labor markets. By accounting for productivity differences, the model features profit and wage differentials across industries. We use this setting to study the impact of trade liberalization on employment, welfare, and...
Persistent link: https://www.econbiz.de/10013149008