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Striking Features of the Labor Market: Theory

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  • William H. Greene
  • Ana P. Martins

Abstract

The present paper develops a simple asymmetrical informational model that allows us to understand the individual´s willingness to participate in a strike. We develop and compare two signaling models of strikes: in one, firms are able to monitor and enforce hours and offer different workweeks to the two types of workers a previous part-time/full-time wage schedules separating equilibrium was presented. In the other, only one work-week schedule can be offered.

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  • William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Theory," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 1-24.
  • Handle: RePEc:eei:journl:v:56:y:2013:i:2:p:1-24
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    More about this item

    Keywords

    Strikes; asymmetric information; signaling; labor contracts; part-time work; mean or grouped data and limited dependent variables; binary choice models with mean or grouped data; sample selection with mean data.;
    All these keywords.

    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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