کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
972068 | 1479697 | 2016 | 6 صفحه PDF | دانلود رایگان |
• We present an alternative implementation of firm-level collective wage bargaining.
• Bargaining sessions proceed sequentially between a firm and a union of variable size.
• The static wage-employment contract coincides with the efficient bargaining outcome.
• With search frictions, gradual and all-or-nothing bargaining outcomes are equivalent.
This paper presents an alternative implementation of firm-level collective wage bargaining, where bargaining proceeds as a finite sequence of sessions between a firm and a union of variable size. We investigate the impact of such a ‘gradual’ union on the wage-employment contract in an economy with concave production. In a static framework, the resulting equilibrium is equivalent to the efficient bargaining outcome. In a dynamic framework with search frictions, we demonstrate that gradual collective wage bargaining coincides with all-or-nothing bargaining when bargaining takes place in fictitious time before production.
Journal: Labour Economics - Volume 40, June 2016, Pages 37–42