In this paper we challenge Parente and Prescott's (1999) theoretical framework, which establishes that unions use their control of quot;work practicesquot; to thwart the efficient use of technology in the firms. We argue instead that unions, despite endowing monopoly rights over a technology,...

A striking feature of the past few decades has been the development of wage-determination models that assume that labour markets are imperfectly competitive. This paper discusses two such models (trade unions and oligopsony), although there are many more. It also asks if imperfectly competitive...

College football and basketball generate huge broadcast and attendance revenues. The NCAA, however, limits the compensation to athletes in these sports to cover, at most, the cost of attending college, which is well below the financial contribution to the schools of the top level college...

The performance of an optimally managed float is compared with that of a credibly fixed exchange rate in a small open-economy framework where wages are set by a monopoly union. Two key results emerge. First, a sufficient condition for the managed float to outperform a fixed rate is that the...

We present a formal model of the effect of heightened product market competition induced by trade liberalization on the distribution of income between profits and wages. Integration increases the employment cost of wage demands, thereby decreasing bargained wages and the share of rents accruing...

This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage cuts that would have happened had inflation been higher. Second, wages...

This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage cuts that would have happened had inflation been higher. Second, wages...

We investigate the effects of maternity leave coverage on women?s post-birth wages, job tenure, and labor market attachment. We pay particular attention to unobservable characteristics that are correlated with maternity leave coverage and that affect labor market outcomes. We use a control...

We investigate the effects of maternity leave coverage on women’s post-birth wages, job tenure, and labor market attachment. We pay particular attention to unobservable characteristics that are correlated with maternity leave coverage and that affect labor market outcomes. We use a control...

The employment effect of the minimum wage is one of the most studied topics in all of economics. This report examines the most recent wave of this research – roughly since 2000 – to determine the best current estimates of the impact of increases in the minimum wage on the employment...