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Union-Firm Bargaining Under Alternative Pay Schemes: Does Performance Related Pay Fair Better?

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  • Rupayan Pal

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    Abstract

    This paper compares and contrasts equilibrium outcomes under right-to-manage bargaining (RTM) and efficient bargaining (EB) corresponding to two alternative pay schemes, fixed wage vis-a-vis piece-rate. [WP No.8]. URL:[http://www.gipe.ac.in/pdfs/working%20papers/wp8.pdf].

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:3803.

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    Date of creation: Mar 2011
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    Handle: RePEc:ess:wpaper:id:3803

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    Web page: http://www.esocialsciences.org

    Related research

    Keywords: equilibrium; RTM; Efficient bargaining; EB; alternative pay; fixed wage; union; firm; Bargaining; piece-rate; Social welfare; Union; output; payoff; manufacturing; firms; pune; India;

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    1. Emmanuel Petrakis & Minas Vlassis, 2004. "Endogenous wage bargaining institutions in oligopolistic sectors," Economic Theory, Springer, vol. 24(1), pages 55-73, 07.
    2. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521464673, April.
    3. Bruce Shearer, 2004. "Piece Rates, Fixed Wages and Incentives: Evidence from a Field Experiment," Review of Economic Studies, Wiley Blackwell, vol. 71(2), pages 513-534, 04.
    4. Oswald, Andrew J, 1982. "Optimal Intervention in an Economy with Trade Unions," The Warwick Economics Research Paper Series (TWERPS) 221, University of Warwick, Department of Economics.
    5. Bhattacherjee, Debashish, 2003. "The Effects of Group Incentives in an Indian Firm - Evidence from Payroll Data," Working Papers 03-14, University of Aarhus, Aarhus School of Business, Department of Economics.
    6. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
    7. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    8. Oswald, Andrew J, 1982. "Trade Unions, Wages and Unemployment: What Can Simple Models Tell Us?," Oxford Economic Papers, Oxford University Press, vol. 34(3), pages 526-45, November.
    9. Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
    10. Kraft, Kornelius, 1998. "The codetermined firm in oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 195-201, November.
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