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Bargaining Solutions and Public Policies in Matching Models

Author

Listed:
  • Sylvain Baumann

    (EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université)

  • Samir Amine
  • Pedro Lages dos Santos

Abstract

The aim of this paper is to show that usually the literature under or overestimate the effect of public policies on the labor market by using systematically a symmetric Nash bargaining solution to share the surplus between worker and firm. Indeed, using a matching model framework, we compare and analyze Nash, Egalitarian, Kalai-Smorodinsky and Equal-Sacrifice solutions. We show that the effects of public policies, as minimum wage or unemployment benefits, would be more or less significative depending on the bargaining solution. It appears that Nash and egalitarian solutions are less inclined to study the impacts of the introduction of the minimum wage.

Suggested Citation

  • Sylvain Baumann & Samir Amine & Pedro Lages dos Santos, 2018. "Bargaining Solutions and Public Policies in Matching Models," Post-Print hal-02971764, HAL.
    • Handle: RePEc:hal:journl:hal-02971764
    as

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    Cited by:

    1. Claus-Jochen Haake & Thorsten Upmann & Papatya Duman, 2020. "Wage Bargaining and Employment Revisited: Separability and Efficiency in Collective Bargaining," CESifo Working Paper Series 8422, CESifo.
    2. Claus‐Jochen Haake & Thorsten Upmann & Papatya Duman, 2023. "Wage bargaining and employment revisited: separability and efficiency in collective bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(2), pages 403-440, April.
    3. Claus-Jochen Haake & Thorsten Upmann & Papatya Duman, 2019. "The Decomposability of the Nash Bargaining Solution in Labor Markets," Working Papers CIE 128, Paderborn University, CIE Center for International Economics.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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