Stronger worker bargaining power boosts employment, but may hurt overall jobs
The article explores how relationships within companies affect wages and job demand. The researchers created a model showing how bargaining power within firms can impact employment levels and capital investment. They found that workers with more bargaining power can lead to higher employment for some groups but lower for others. Interestingly, having strong bargaining power can sometimes lead to too much investment in physical capital. Overall, the study shows that internal dynamics within companies can have significant effects on wages, employment, and investment decisions.