Theory suggests that firms confront a hold-up problem in dealing with workplace unionism: unions will appropriate a portion of the quasi-rents stemming from long-lived capital. As a result, firms may be expected to limit their exposure to rent-seeking by reducing investments. The U.S. evidence...

The liberalization of the German Markets for postal Services which have been realized with the beginning of 2008 was politically combined with the introduction of minimum wage legislation. This minimum wage increases the labour costs of the competitors without reaching the cost level of the...