Montagna, Catia; Nocco, Antonella - Scottish Institute for Research in Economics (SIRE) - 2011
We study how unionisation affects competitive selection between heterogeneous fi rms when wage negotiations can occur at the fi rm or at the profi t-centre level. With productivity speci c wages, an increase in union power has: (i) a selection-softening; (ii) a counter-competitive; (iii) a...