are sufficiently low, collectively bargained wages are smaller. The theory sheds new light on policies concerned with …

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …

Conventional theory predicts that productivity gains lead to hikes in real pay. Efficiency wage theory hypothesizes …

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …

; unionised oligopoly ; labour market segmentation ; labour income tax progression ; trade union preferences …

In a framework of a n-union/n-firm oligopoly, this paper analyzes the incentive for firms and unions to adopt efficient …