Wage and Employment Eff ects of Workplace Representation – A ”Right To Co-Manage” Model
AbstractGovernment agencies and other national and international institutions are asked to perform foThis paper introduces a two-stage union-oligopoly-council model of wage and employment determination wherein at the fi rst stage wage is negotiated through collective bargaining and at the second stage employment in each fi rm is co-determined by the employer and its works council. We provide a full characterization of the model outcome for all parameter values of bargaining power and co-determination power. In particular, works councils always increase employment while their impact on wage can be non-monotonic. Overall, individual works councils’ pursuit of own workers’ interests may well harm the workers as a union.
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Bibliographic InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0178.
Length: 47 pages
Date of creation: Mar 2010
Date of revision:
Find related papers by JEL classification:
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-04 (All new papers)
- NEP-LAB-2010-04-04 (Labour Economics)
- NEP-MIC-2010-04-04 (Microeconomics)
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