Firing Costs, Unions and Employment
AbstractThis paper develops a simple model of employment, non-statutory redundancy pay and wage determination. An interesting feature of this model is that the contract curve is vertical. Some of the predictions of the model are confronted with the available British data on non-statutory firing costs, from the 1990 Workplace Industrial Relations Survey. The estimates indicate: first, that bargaining over redundancy pay is more prevalent in plants with a strong union presence; second, that bargaining over redundancy pay has no impact on recent employment variation for plants in the sample; and third, that financial performance is unaffected by manual bargaining, but is positively associated with non-manual bargaining.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1347.
Date of creation: Mar 1996
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Other versions of this item:
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
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