Wage Bargaining and Employer Objectives
AbstractThis paper compares union wage bargaining outcomes across different types of employers. Five different employer objectives are discussed; profit–, welfare– and output maximization, and two specifications of a Leviathan. The model shows that the ordering of the union wage level across employer types depends on the functional form of product demand. With constant elasticity of product demand, the wage tends to be lowest in the output maximization case, while with a linear product demand, the wage tends to be lowest under welfare maximization.
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Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 2402.
Length: 29 pages
Date of creation: 01 Dec 2002
Date of revision:
Wage bargaining; Employer objectives; Wage differentials;
Other versions of this item:
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
This paper has been announced in the following NEP Reports:
- NEP-AFR-2003-02-10 (Africa)
- NEP-ALL-2003-02-10 (All new papers)
- NEP-LAB-2003-02-10 (Labour Economics)
- NEP-PKE-2003-02-10 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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NBER Working Papers
1179, National Bureau of Economic Research, Inc.
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