Advanced Search
MyIDEAS: Login to save this paper or follow this series

Product market competition and unionized wage

Contents:

Author Info

  • Arijit Mukherjee

Abstract

Considering a move from monopoly to duopoly, Bastos et al. (“Open shop unions and product market competition”, 2010, Canadian Journal of Economics) provides open-shop union, where the union density is less than one, as a theoretical reason for the evidence of a positive relationship between product market competition and unionized wage. We show that their theoretical result is very much sensitive to the assumption of initial monopoly. Using the right-to-manage-model of labor union and generalizing their work with multiple unionized and non-unionized firms, we show that if there are at least two firms initially, higher product market competition reduces unionized wage, irrespective of the union density, bargaining power of the union and the union’s preference for wage and employment. We then provide a simple reason for the unionized wage increasing effect of product market competition based on external economies of scale.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nottingham.ac.uk/economics/documents/discussion-papers/10-15.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Nottingham, School of Economics in its series Discussion Papers with number 10/15.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:not:notecp:10/15

Contact details of provider:
Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
More information through EDIRC

Related research

Keywords: Competition; External economics of scale; Open shop union; Wage;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:not:notecp:10/15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.