By building on theoretical work by Mills and Schumann (1985) and Ungern-Sternberg (1990) this paper provides evidence on the determinants of two dimensions of flexibility, the flexibility in adjusting aggregate output over time ("tactical flexibility") as well as the ability to switch quickly...

This text develops a bargaining trade union model which includes working time and wages in the set of negotiated variables, the "right to manage" of the firm being limited to employment decision. The model allows for time varying effectiveness of workers and fixed costs of labor and considers a...