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Wage Bargaining and Employer Objectives

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Author Info
Torberg Falch () (Department of Economics, Norwegian University of Science and Technology)

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Abstract

This 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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File URL: http://www.svt.ntnu.no/iso/WP/2002/24wagebargainingandemployerobjectives.pdf
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Publisher Info
Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 2402.

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Length: 29 pages
Date of creation: 01 Dec 2002
Date of revision:
Handle: RePEc:nst:samfok:2402

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Related research
Keywords: Wage bargaining Employer objectives Wage differentials

Other versions of this item:

Find related papers by JEL classification:
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

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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.:
  1. Paz Espinosa, Maria & Rhee, Changyong, 1989. "Efficient Wage Bargaining as a Repeated Game," The Quarterly Journal of Economics, MIT Press, vol. 104(3), pages 565-88, August. [Downloadable!] (restricted)
  2. Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-45, June. [Downloadable!] (restricted)
  3. Booth, Alison L, 1984. "A Public Choice Model of Trade Union Behaviour and Membership," Economic Journal, Royal Economic Society, vol. 94(376), pages 883-98, December. [Downloadable!] (restricted)
  4. Falch, Torberg, 2001. "Collective bargaining in the public sector and the role of budget determination," European Journal of Political Economy, Elsevier, vol. 17(1), pages 75-99, March. [Downloadable!] (restricted)
  5. D Blanchflower, 1996. "The Role and Influence of Trade Unions in the OECD," CEP Discussion Papers 0310, Centre for Economic Performance, LSE.
  6. Ronald G. Ehrenberg & Joshua L. Schwarz, 1987. "Public Sector Labor Markets," NBER Working Papers 1179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Rebecca M. Blank, 1993. "Public Sector Growth and Labor Market Flexibility: The United States vs. The United Kingdom," NBER Working Papers 4339, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2008-11-7.


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