Economics, Econometrics and Finance
4 years ago

Higher Wages for Workers as Firms Gain Bargaining Power in Union Negotiations

1 view
RePEc: Research Papers in Economics
Efficiency wages and union-firm bargaining with private information
Ana Mauleón, Vincent J. Vannetelbosch

Paper Summary

Efficiency wages can impact wage levels in union-firm negotiations with hidden information. Increasing efficiency wages may not always raise wages, but if the firm is stronger than the union and demand is elastic, higher efficiency wages will lead to higher wages.

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