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Choice of union-firm bargaining agenda and social welfare

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Author Info

  • Rupayan Pal

    (Gokhale Institute of Politics & Economics, India)

Abstract

This paper shows that with a strong labour union, bargaining over piece rate generates higher social welfare than bargaining over fixed wage. Moreover, this social welfare exceeds the social welfare under efficient bargaining level, if the union is very strong.

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File URL: http://128.118.178.162/eps/pe/papers/0507/0507014.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0507014.

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Length: 8 pages
Date of creation: 27 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0507014

Note: Type of Document - pdf; pages: 8
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Web page: http://128.118.178.162

Related research

Keywords: Bargaining; Fixed wage; Piece rate; Social welfare; Union;

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References

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  1. Edward P. Lazear, 1996. "Performance Pay and Productivity," NBER Working Papers 5672, National Bureau of Economic Research, Inc.
  2. M. Ryan Haley, 2003. "The Response of Worker Effort to Piece Rates: Evidence from the Midwest Logging Industry," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
  3. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
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Cited by:
  1. Appelbaum, Elie, 2011. "Union-firm bargaining: Order of play and efficiency," Games and Economic Behavior, Elsevier, vol. 71(2), pages 235-245, March.

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