Product market competition, external economies of scale and unionized wage
AbstractAlthough empirical evidence shows that higher product market competition increases unionized wage, the theoretical literature did not pay much attention to this aspect. We show that the positive relation between product market competition and unionized wage may occur in the presence of external economies of scale. In this respect, the labor productivity and the effects of the external economies of scale may play important roles.
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Bibliographic InfoPaper provided by University of Nottingham, School of Economics in its series Discussion Papers with number 11/14.
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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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competition; external economies of scale; unionized wage;
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