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Bargaining with Outside Options: Wages and Employment in UK Manufacturing 1974-82

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  • Scaramozzino, Pasquale

Abstract

This paper develops a model of labor bargaining in which insider and outsider factors play a different role across firms and over time. Three different bargaining regimes are identified: in two of them the outcome is dictated by outside market conditions, while in the third there is scope for insider factors. Empirical findings in U.K. manufacturing firms from 1974 until 1982 show evidence of such structural breaks in the rent-sharing behavior. They also support the view that, in the sample period, wage determination at the firm level has largely been driven by factors external to the firm. Copyright 1991 by Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 101 (1991)
Issue (Month): 405 (March)
Pages: 331-42

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Handle: RePEc:ecj:econjl:v:101:y:1991:i:405:p:331-42

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Cited by:
  1. Carlyle Farrell & Gervan Fearon, 2005. "Renting Goodwill in International Marketing Channels: An Analysis of Pricing Strategies and Bargaining Power," Atlantic Economic Journal, International Atlantic Economic Society, vol. 33(3), pages 285-296, September.
  2. Gervan Fearon, 2004. "Public sector wage settlement and the threat of outsourcing," Atlantic Economic Journal, International Atlantic Economic Society, vol. 32(3), pages 161-174, September.
  3. Joyce P. Jacobsen & Gilbert L. Skillman, 2012. "Neoclassical Models of Imperfectly Competitive Labor Markets," Wesleyan Economics Working Papers 2012-007, Wesleyan University, Department of Economics.

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