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Pay Inequality

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Author Info
Moene, Karl Ove
Wallerstein, Michael

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Abstract

The authors investigate the effects of wage compression through centralized collective bargaining when growth depends on the continual reallocation of labor from older, less productive plants to new, more productive plants. They first study the compression of wage differentials that derive from decentralized bargaining in heterogeneous plants. The authors then consider wage compression when wage differentials arise from competition among employers over workers of differing quality. They show that wage compression through centralized bargaining can result in higher profits and greater entry of new plants than either decentralized bargaining or a competitive labor market. Copyright 1997 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 15 (1997)
Issue (Month): 3 (July)
Pages: 403-30
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Handle: RePEc:ucp:jlabec:v:15:y:1997:i:3:p:403-30

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  2. Fredrik Heyman, 2005. "Pay inequality and firm performance: evidence from matched employer--employee data," Applied Economics, Taylor and Francis Journals, vol. 37(11), pages 1313-1327, June. [Downloadable!] (restricted)
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  4. Hibbs Jr., Douglas A., 2000. "Bread and Peace Voting in U.S. Presidential Elections," Working Papers in Economics 20, Göteborg University, Department of Economics. [Downloadable!]
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  5. Justus Haucap & Christian Wey, 2002. "Unionization Structures and Firms' Incentives for Productivity Enhancing Investments," CIG Working Papers FS IV 02-10, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
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  6. Kjell Erik Lommerud & Odd Rune Straume, 2007. "Technology resistance and globalisation with trade unions: the choice between employment protection and flexicurity," NIPE Working Papers 25/2007, NIPE - Universidade do Minho. [Downloadable!]
  7. Hibbs Jr., Douglas A. & Locking, Håkan, 2000. "Wage Dispersion and Productive Efficiency: Evidence For Sweden," Working Papers in Economics 21, Göteborg University, Department of Economics. [Downloadable!]
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  8. Sebastian Braun, 2009. "Unionisation Structures, Productivity, and Firm Performance," SFB 649 Discussion Papers SFB649DP2009-027, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
  9. Norbäck, Pehr-Johan, 1999. "Cumulative Effects of Labor Market Distortions in a Developing Country," Working Paper Series 520, Research Institute of Industrial Economics, revised 05 Oct 2000. [Downloadable!]
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  10. Justus Haucap & Christian Wey, 2004. "Unionisation Structures and Innovation Incentives," Discussion Papers of DIW Berlin 398, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  11. Rita Asplund, 2004. "A Macroeconomic Perspective on Education and Inequality," Discussion Papers 906, The Research Institute of the Finnish Economy. [Downloadable!]
  12. Antecol, Heather & Kuhn, Peter & Trejo, Stephen J., 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Heyman, Fredrik, 2001. "Wage Dispersion and Allocation of Jobs," Working Paper Series in Economics and Finance 479, Stockholm School of Economics. [Downloadable!]
  14. Daniel Miles & Máximo Rossi, 2001. "Wage Inequality in Developing Countries: Market Forces or Government Intervention," Documentos de Trabajo (working papers) 1001, Department of Economics - dECON. [Downloadable!]
  15. Tomi Kyyrä & mika Maliranta, 2006. "The Micro-level Dynamics of Declining Labour Share: Lessons from Finnish Great Leap," Discussion Papers 1049, The Research Institute of the Finnish Economy. [Downloadable!]
  16. Harald Dale-Olsen and Dag Rønningen, 2000. "The Importance of Definitions of Data and Observation Frequen-cies for Job and Worker Flows - Norwegian Experiences 1996-1997," Discussion Papers 278, Research Department of Statistics Norway. [Downloadable!]
  17. Raaum,O. & Aabo,T.E., 1999. "The effect of schooling on earnings : the role of family background studied by a large sample of Norwegian twins," Memorandum 16/1999, Oslo University, Department of Economics. [Downloadable!]
  18. Aidt, T.S. & Tzannatos, Z., 2005. "The Cost and Benefits of Collective Bargaining," Cambridge Working Papers in Economics 0541, Faculty of Economics, University of Cambridge. [Downloadable!]
  19. Ana Aizcorbe & Samuel Kortum, 2004. "Moore's Law and the Semiconductor Industry: A Vintage Model," BEA Working Papers 0019, Bureau of Economic Analysis. [Downloadable!]
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  20. Fredrik Heyman, 2008. "How Wage Compression Affects Job Turnover," Journal of Labor Research, Springer, vol. 29(1), pages 11-26, March. [Downloadable!] (restricted)
  21. Erling Barth & Karl O. Moene, 2009. "The Equality Multiplier," NBER Working Papers 15076, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  22. Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2005. "Globalization and Union Opposition to Technological Change," CEPR Discussion Papers 4836, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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