| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5067008 | European Economic Review | 2013 | 17 Pages |
Abstract
⺠We study theoretically how the level of collective bargaining affects unemployment. ⺠We use a one-sector Mortensen-Pissarides model with firm-level productivity shocks. ⺠Unemployment is higher under sectoral bargaining than under firm-level bargaining. ⺠Interplay of heterogeneity and wage compression under centralized bargaining is key. ⺠Efficient opting-out of sectoral agreements replicates the decentralized outcome.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Juan F. Jimeno, Carlos Thomas,