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Relative wages, labor specialization and bargaining patterns

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Author Info

  • Fernando Sánchez-Losada

    ()
    (CREB and Universitat de Barcelona, Departament de Teoria Econòmica, Av. Diagonal, 690, 08034 Barcelone, Spain)

Abstract

The goal of this paper is to study the effects of centralized and decentralized bargaining patterns on wage inequality when there are two different types of labor, skilled and unskilled. We present two models where labor is specialized between firms, that is, there are two types of firms, each one employing one type of labor. We show that the revenue shares of the production factors in each type of firm and the union power are crucial determinants of the relative wage. In contrast, the relative expected wage is the same across models and bargaining patterns.

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Bibliographic Info

Article provided by Springer in its journal Spanish Economic Review.

Volume (Year): 3 (2001)
Issue (Month): 3 ()
Pages: 211-221

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Handle: RePEc:spr:specre:v:3:y:2001:i:3:p:211-221

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Keywords: Relative wages; labor specialization; decentralized and centralized bargaining;

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