In this paper we study how foreign ownership of Swedish companies affect employment and wage setting. To study the effects we specify a model that is essentially based on the assumption that the Swedish labour market can be described as a market where trade unions and employers bargain over both...

In this paper we develop a game-theoretic version of the "right-to-manage" model of firm-level bargaining where strategic interactions among firms are explicitly recognized. Our main aim is to investigate how equilibrium wages and employment react to changes in various labor and product market...

In this paper we develop a theory of union power based on the aggregation of bargaining power of individual workers with firm specific skills. Union power depends on the ease of replacement from internal and external labor markets. Unions increase the bargaining power of insiders only in states...

We investigate the effects of wage compression through centralized collective bargaining when growth depends on the continual reallocation of labor from older, less productive plants to new, more productive plants.

In this paper we develop a game-theoretic version of the "right-to-manage" model of firm-level bargaining where strategic interactions among firms are explicitly recognized. Our main aim is to investigate how equilibrium wages and employment react to changes in various labor and product market...

The purpose of our research is to investigate whether the high school basketball player is better off attending or forgoing his college career to enter the NBA directly out of high school. We measure “better off” by total salary earned in the first ten years of a player’s NBA career. Using...

The 1993 Income Policy Agreements (concertazione) reformed wage setting institutions in Italy. This change introduced a relevant ability in absorbing macroeconomic shocks and a curb in inflation- ary expectations, at the cost of stagnant aggregate real wages. The firm-level wage premia remained...

Despite declining bargaining power, unions continue to generate a wage premium. Some feel collective bargaining has had its day. Politicians on both sides of the Atlantic have recently called for the removal of bargaining rights from workers in the name of wage and employment flexibility, yet...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...