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Union Wages, Hours of Work and the Effectiveness of Partial Coordination Agreements Author info | Abstract | Publisher info | Download info | Related research | Statistics Sven Wehke () (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
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Small monopoly trade unions decide upon the wage rate per hour and the hours of work subject to firm's demand for union members. Since the resulting Nash equilibrium is characterized by excess unemployment, we study the employment and welfare effects when trade unions try to coordinate their policies. Firstly, we consider a joint agreement about marginal wage moderation, where trade unions remain free to choose the hours of work non-cooperatively. Secondly, we analyze in which way a joint change in the hours of work affects employment and welfare if trade unions are free to choose the wage rate.
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Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number
07019.
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Length: 28 pages
Date of creation: Sep 2007Date of revision:
Handle: RePEc:mag:wpaper:07019Contact details of provider: Postal: Universit�tsplatz 2, Geb�ude W und I, 39106 Magdeburg Phone: (0391) 67-18 584 Fax: (0391) 67-12 120 Web page: http://www.ww.uni-magdeburg.de More information through EDIRC
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Keywords: unemployment ; wage setting ; hours of work ; partial cooperation ; Other versions of this item:
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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