We examine wage bargaining when employers and labor unions do not always take all general equilibrium effects into account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low unemployment results. With an intermediate view, when partial...

We examine wage bargaining when employers and labor unions do not always take all general equilibrium effects into account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low unemployment results. With an intermediate view, when partial...

This paper argues that European integration has constrained the discretion of industrial relations actors. The result has been not the widely predicted institutional fragmentation of collective bargaining, but a change in the functioning of these systems. At the same time, widespread "social...