In contrast to the predictions of conventional economic theory, it is well documented that similar workers receive wages positively correlated with the size of the firm employing them. To explain these findings we augment the Waldman (1984) framework by adding a size variable and construct a...

This note analyzes the differences between strategic trade and domestic competition policies to regulate a unionized monopoly. In the presence of an industry-wide union, the entry of a domestic competitor does not reduce labor market distortions, while strategic trade policy reduces both labor...

In this paper I investigate the relationship between unionization and the size of the informal economy. Using a cross-country panel data for 30 countries over the period from 1960 to 2009, I find a strong and robust negative correlation between unionization and the size of the informal economy.

This paper investigates the patterns of bargaining in a multi-unit firm in the presence of labor unions coordination activities. It derives the bargaining regimes arising as sub-game perfect equilibria, considering both simultaneous and sequential games where parties choose whether to coordinate...

In this paper we revisit the issue of the scope of bargaining between firms and unions. It is shown that an agreement between parties on the bargaining agenda may endogenously emerge only on the Efficient Bargaining arrangement, provided that union's power is not too high.

After the stabilization plan of 1994, and trade liberalization, the Brazilian inflation rate ped from two figures monthly to a single one annually. Several large capitalization firms began adhering to the Annual Social Audit disclosures, a series of internal and external indicators mostly...

Using a three-stage least squares estimator, this paper analyzes within a three equation model the effects of company-level pacts involving reciprocal concessions in Germany. We find that such agreements between employers and employees commonly fail to achieve their primary objective to...

This paper investigates whether increases in the minimum wage in France have the same impact on the average wage when intended to preserve the purchasing power of the minimum wage as when intended to raise it. We find that the impact of the minimum wage on the average wage is strong, but differs...

This paper analyses the labour market effects of union wage bargaining for different sequences of the employment choice and the wage bargain. The result that collective bargaining decreases (firm-level) employment in a right-to-manage setting hinges on the assumption that employment is chosen by...

This paper offers a new representation of discrimination on the job market based on the most recent findings in the socio-psychological academic literature about human behaviour. Put it simply, it is assumed that the agents prefer working with people like themselves. This "affinity" principle is...