Short-Run Bargaining, Factors Shares and Growth
In this paper we assume that firms and unions bargain efficiently on wages and employment, whereas work effort is optimally chosen by workers. In the short run, the bargaining process leads to the contract curve. Instead of solving the model and leaving the equilibrium dependent on an exogenous social partners bargaining power, we prefer to leave the wage rate undetermined. Using an endogenous growth model based on human capital, and on the hypothesis that firms invest profits in physical capital while workers optimally allocate their earnings between consumption and investment in human capital, we determine the wage rate that maximizes individual expected utility. Finally, we investigate the relationship between short run behaviour and long run optimality.
|Date of creation:||Jul 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Piazzale Martelli, 8, 60121 Ancona|
Phone: +39 071 220 7100
Fax: +39 071 220 7102
Web page: http://www.dises.univpm.it/
More information through EDIRC
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.:
- Andreas Irmen & Berthold U. Wigger, 2000.
"Trade Union Objectives and Economic Growth,"
CSEF Working Papers
34, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Bucci, Alberto & Fiorillo, Fabio & Staffolani, Stefano, 2001.
"Can Market Power influence Employment, Wage Inequality and Growth ?,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2000030, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Alberto Bucci & Fabio Fiorillo & Stefano Staffolani, 2003. "Can Market Power Influence Employment, Wage Inequality and Growth?," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 129-160, 05.
- Alberto BUCCI & Fabio FIORILLO & Stefano STAFFOLANI, 2000. "Can Market Power influence Employment, Wage Inequality and Growth?," Working Papers 141, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Palokangas, Tapio K., 2003. "Labour Market Regulation, Productivity-Improving R&D and Endogenous Growth," IZA Discussion Papers 720, Institute for the Study of Labor (IZA).
- Henri L. F. De Groot, 2001. "Unemployment, Growth, and Trade Unions," Growth and Change, Wiley Blackwell, vol. 32(1), pages 69-91.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:188. 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: (Maurizio Mariotti)
If references are entirely missing, you can add them using this form.