Trade Unions, Efficiency Wages, and Shirking
AbstractEfficiency wage models typically study the determination of wages and effort levels in the context of a labour market where the supply side is competitive. In this paper, the authors examine the effects of unionization on wages and effort. In addition to the monitoring technology where a noisy signal of each workers performance is received, they propose and investigate a spot-check monitoring technology where the effort of a fraction of workers is measured exactly. They examine models where the union can bargain over wages alone, and over wages and effort. In all cases, the authors show that the popular wisdom that unions reduce effort is generally false. Copyright 1996 by Royal Economic Society.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 48 (1996)
Issue (Month): 1 (January)
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- Erkki Koskela & Rune Stenbacka, 2004. "Profit Sharing and Unemployment: An Approach with Bargaining and Efficiency-Wage Effects," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 477-, September.
- Erkki Koskela & Rune Stenbacka, 2000. "Capital Structure, Wage Bargaining and Employment," CESifo Working Paper Series 275, CESifo Group Munich.
- Bo Sandemann Rasmussen, . "Efficiency Wages and the Long-Run Incidence of Progressive Taxation," Economics Working Papers 2001-5, School of Economics and Management, University of Aarhus.
- Koskela, Erkki & Stenbacka, Rune, 2003. "Profit Sharing and Unemployment: An Approach with Bargaining and Efficiency Wage Economics," Discussion Papers 863, The Research Institute of the Finnish Economy.
- Koskela, Erkki & Stenbacka, Rune, 2003. "Equilibrium Unemployment Under Negotiated Profit Sharing," IZA Discussion Papers 840, Institute for the Study of Labor (IZA).
- Karina Gose & Abdolkarim Sadrieh, 2013. "Strike, coordination, and dismissal in uniform wage settings," FEMM Working Papers 130008, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Bulkley, George & Myles, Gareth D., 1997. "Bargaining over effort," European Journal of Political Economy, Elsevier, vol. 13(2), pages 375-384, May.
- Altenburg, Lutz & Straub, Martin, 2001. "Taxes on labour and unemployment in a shirking model with union bargaining," Labour Economics, Elsevier, vol. 8(6), pages 721-744, December.
- Koskela, Erkki & Schöb, Ronnie, 2006.
"Tax progression under collective wage bargaining and individual effort determination,"
Discussion Papers, Research Unit: Market Processes and Governance
SP II 2006-13, Social Science Research Center Berlin (WZB).
- Erkki Koskela & Ronnie Schöb, 2012. "Tax Progression under Collective Wage Bargaining and Individual Effort Determination," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(3), pages 749-771, 07.
- Erkki Koskela & Ronnie Schöb, 2007. "Tax Progression under Collective Wage Bargaining and Individual Effort Determination," CESifo Working Paper Series 2024, CESifo Group Munich.
- Erkki Koskela & Rune Stenbacka, 2000. "Compensation and Bargaining with Entrpreneurship as the Outside Option," CESifo Working Paper Series 314, CESifo Group Munich.
- Erkki Koskela & Jan König, 2009. "Can Profit Sharing Lower Flexible Outsourcing? A Note," CESifo Working Paper Series 2606, CESifo Group Munich.
- Arzu Yavuz, 2011. "Productivity and Wage Differentials between Private and Public Sector in the Developing Countries (Gelismekte Olan Ülkelerde Özel ve Kamu Sektöründeki Verimlilik ve Ücret Farklilasmasi)," Working Papers 1103, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Erkki Koskela & Rune Stenbacka, 2004. "Equilibrium unemployment under negotiated profit sharing," Labor and Demography 0404009, EconWPA.
- Koskela, Erkki & König, Jan, 2009. "Can Profit Sharing Lower Flexible Outsourcing? A Note," IZA Discussion Papers 4063, Institute for the Study of Labor (IZA).
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