Dodini, Samuel; Stansbury, Anna; Willén, Alexander - 2023
employment and scales up production, charges higher prices in the product market, enjoys higher nominal value added per worker …, and experiences no decrease in profits. We show that this result is a direct implication of the labor- and product-market …-equilibrium model of firm decision-making that incorporates union bargaining, product-market price-setting power, and labor market …