Stronger Incentives for Cost Efficiency Could Boost Worker Wages in Regulated Industries
The article looks at how regulatory laws in certain industries impact wages through negotiations between workers and companies. When unions are strong, workers tend to receive higher wages. The researchers found that in these cases, rules that push companies to be more cost-effective need to be stricter to ensure they operate efficiently. This means that when workers have more bargaining power, companies need more incentives to keep costs down.