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In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade unions. In order to discourage mobile firms from leaving the country, unions accept lower sector wages. In effect, the negotiated wage becomes independent of workers' bargaining...
Persistent link: https://www.econbiz.de/10010270554
Can a merger from duopoly to monopoly be detrimental for profits? This paper deals with this issue by focusing on the interaction between decreasing returns to labour (which imply firms’ convex costs) and centralized unionization. First, it is highlighted that a wage ‘non‐rigidity’...
Persistent link: https://www.econbiz.de/10014125095
In this model I show why unions sometimes do not reduce wages, even if it will be profitable for themselves and the economy. The reasons are simple. When I allow unions and firms to be bounded rational agents with limited information, it is individually rational for unions to behave like this....
Persistent link: https://www.econbiz.de/10013142828
human capital and productivity improvements. While educational attainment is very high, the education system needs to be …
Persistent link: https://www.econbiz.de/10011392839
This article investigates how changing production processes and increasing market power at the firm level relate to a fall in Germany’s manufacturing sector labour share. Coinciding with the fall of the labour share, I document a rise in firms’ product and labour market power. Notably,...
Persistent link: https://www.econbiz.de/10011975260
The effects of unions on productivity and firm performance have been the topic of extensive research. Existing studies … of identical firms. This paper studies how different unionisation structures affect firm productivity and firm … tougher selection among heterogeneous producers and thus increases average productivity, firm-level bargaining allows less …
Persistent link: https://www.econbiz.de/10008517964
-setting power) and (iii) revenue productivity. We apply this framework to analyze whether the pricing behavior of firms in product …
Persistent link: https://www.econbiz.de/10012940834
-setting power) and (iii) revenue productivity. We apply this framework to analyze whether the pricing behavior of firms in product …
Persistent link: https://www.econbiz.de/10012942170
Persistent link: https://www.econbiz.de/10010202230
Europe has witnessed the last decade an accelerated process of economic integration. Trade barriers were removed, the euro was introduced and ten new member states entered the European Union. Economic integration is likely to have an impact on both labor and product markets. Unlike most other...
Persistent link: https://www.econbiz.de/10011622343