This paper investigates whether compliance with sectoral wages, or "underground" wages (i.e. equilibrium wages lower than the, officially minimum, sectoral ones), may emerge endogenously in industries with market power. Wage bargaining is centralized and it is conducted by large-scale efficient firms and their own union. Small-scale inefficient firms are officially considered to be wage-takers.
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Paper provided by Athens University of Economics and Business, Department of International and European Economic Studies in its series Athens University of Economics and Business with number
98.
Length: 21 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:athebu:98
Contact details of provider: Postal: Athens University of Economics and Business, Department of International and European Economic Studies. Parission 76, Athens Greece 10434 Phone: +30 1 8203250 Fax: +301 8228419 Web page: http://www.aueb.gr/ More information through EDIRC
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Find related papers by JEL classification: J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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