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Comment on: "Centralized Bargaining and Reorganized Work: Are they Compatible?"

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  • Ludsteck, Johannes

Abstract

Assar Lindbeck and Denis Snower investigate the effects of multitasking and teamwork on the viability of centralised bargaining. They emphasize that workers likely have private information concerning their task mix when multitasking plays a significant role in the production process. They try to show in a formal model that only a complex remuneration scheme provides incentives for workers to choose an optimal task mix and suggest that centralized wage setting cannot tackle this complexity. We show that their remuneraton scheme is either not necessary to solve the considered information problem or not implementable.

Suggested Citation

  • Ludsteck, Johannes, 2003. "Comment on: "Centralized Bargaining and Reorganized Work: Are they Compatible?"," MPRA Paper 30164, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30164
    as

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    File URL: https://mpra.ub.uni-muenchen.de/30164/1/MPRA_paper_30164.pdf
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    References listed on IDEAS

    as
    1. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
    2. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, vol. 45(10), pages 1851-1875, December.
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    More about this item

    Keywords

    reorganization; holistic firms; centralized bargaining; incentive payment;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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