Regulation with wage bargaining
In many regulated industries labour unions are strong and there is clear empirical evidence of labour rent-sharing. In this paper, we study optimal regulation in a model in which wages are determined endogenously by wage bargaining at the firm level. A seemingly robust conclusion, at least when worker bargaining power is considerable, is that incentives for cost efficiency should be stronger than in the standard case in which wages do not depend on the regulatory regime. Copyright 2003 Royal Economic Society.
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Volume (Year): 113 (2003)
Issue (Month): 487 (04)
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References listed on IDEAS
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.:
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93-11, Massachusetts Institute of Technology (MIT), Department of Economics.
- David Card, 1996. "Deregulation and Labor Earnings in the Airline Industry," NBER Working Papers 5687, National Bureau of Economic Research, Inc.
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