Optimum organization of the labor market in a small open economy
In Denmark labor has been organized in independent but cooperating craft unions for more than a century. Within an extremely simple model of a small open economy facing imperfect competition, we analyze four different ways of organizing the labor market and show that the Danish model (partial centralization of the wage setting process) may be accounted for as the outcome of a two-stage Nash bargaining game, being robust in relation to changes in market conditions, and likely close to optimum from the point of view of society as a whole.
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.:
- Munch, Jakob Roland & Skaksen, Jan Rose, 2002. " Product Market Integration and Wages in Unionized Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(2), pages 289-99, June.
- Henrick Horn & Asher Wolinsky, 1988.
"Bilateral Monopolies and Incentives for Merger,"
RAND Journal of Economics,
The RAND Corporation, vol. 19(3), pages 408-419, Autumn.
- De Fraja, Giovanni, 1993. "Staggered vs. synchronised wage setting in oligopoly," European Economic Review, Elsevier, vol. 37(8), pages 1507-1522, December.
- Lommerud, Kjell Erik & Sørgard, Lars & Straume, Odd Rune, 2003.
"National versus International Mergers in Unionised Oligopoly,"
CEPR Discussion Papers
4040, C.E.P.R. Discussion Papers.
- Kjell Erik Lommerud & Odd Rune Straume & Lars Sørgard, 2006. "National versus international mergers in unionized oligopoly," RAND Journal of Economics, RAND Corporation, vol. 37(1), pages 212-233, 03.
- Lommerud, Kjell Erik & Straume, Odd Rune & Sørgard, Lars, 2003. "National versus international mergers in unionised oligopoly," Working Papers in Economics 12/03, University of Bergen, Department of Economics.
- Gylfason, Thorvaldur & Lindbeck, Assar, 1984. "Union Rivalry and Wages: An Oligopolistic Approach," Economica, London School of Economics and Political Science, vol. 51(202), pages 129-39, May.
- Holden, S. & Raaum, O., 1989.
"Wage Moderation And Unions Structure,"
06/1989, Oslo University, Department of Economics.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
252, David K. Levine.
- Moene, Karl O, 1988. "Unions' Threats and Wage Determination," Economic Journal, Royal Economic Society, vol. 98(391), pages 471-83, June.
- Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
- Hoel, M., 1989.
"Union Wages Policy: The Importance Of Labour Mobility And The Degree Of Centralization,"
05/1989, Oslo University, Department of Economics.
- Hoel, Michael, 1991. "Union Wage Policy: The Importance of Labour Mobility and the Degree of Centralization," Economica, London School of Economics and Political Science, vol. 58(230), pages 139-53, May.
- Wallace Hendricks & Larry M. Kahn, 1982. "The determinants of bargaining structure in U.S. manufacturing industries," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(2), pages 181-195, January.
- Jun, Byoung Heon, 1989. "Non-cooperative Bargaining and Union Formation," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 59-76, January.
- Naylor, Robin A, 1995. " On the Economic Effects of Multiple Unionism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 161-67, March.
- Risager, Ole, 1993. "Labour Substitution in Denmark," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(1), pages 123-35, February.
- Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
- Jonas Björnerstedt & Andreas Westermark, 2009. "The inefficiency of price quantity bargaining," Economic Theory, Springer, vol. 40(2), pages 301-332, August.
- Zhao, Laixun, 1998. "The Impact of Foreign Direct Investment on Wages and Employment," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 284-301, April.
- Pemberton, James, 1988. "A 'Managerial' Model of the Trade Union," Economic Journal, Royal Economic Society, vol. 98(392), pages 755-71, September.
When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:19:y:2012:i:2:p:222-231. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.