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The prevalence of labor unions have declined post-WWII, and this paper examines whether globalization is a contributing … distributional effects of globalization and for the future of organized labor. …
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We analyze the welfare and employment effects of different wage bargaining regimes. Within the large firm search model, we show that collective bargaining affects employment via two channels. Collective bargaining exerts opposing effects on job creation and wage setting. Firms have a stronger...
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