Bargaining with Outside Options: Wages and Employment in UK Manufacturing 1974-82
This paper develops a model of labor bargaining in which insider and outsider factors play a different role across firms and over time. Three different bargaining regimes are identified: in two of them the outcome is dictated by outside market conditions, while in the third there is scope for insider factors. Empirical findings in U.K. manufacturing firms from 1974 until 1982 show evidence of such structural breaks in the rent-sharing behavior. They also support the view that, in the sample period, wage determination at the firm level has largely been driven by factors external to the firm. Copyright 1991 by Royal Economic Society.
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Volume (Year): 101 (1991)
Issue (Month): 405 (March)
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