Value of Work: Bargaining, Job-Satisfaction, and Taxation in a Simple GE Model
Job-satisfaction as a component of workers' utility has been strangely neglected, with work usually regarded as reducing utility and the benefits of leisure. This is contradicted by many empirical studies showing that unemployment is a major cause of unhappiness, even when income is controlled for. Here we develop a simple model where job-satisfaction is non-contractible but can be included in extended collective bargaining when workers participate in management, but employment is still chosen to maximise profit. Including taxation to fund unemployment benefits and public goods, we show that switching from traditional bargaining over wages to extended (but still second-best) bargaining can generate a Pareto welfare improvement.
|Date of creation:||Sep 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Clark, A.E., 1995.
"Job Satisfaction and Gender: Why Are Women so Happy at Work?,"
DELTA Working Papers
95-10, DELTA (Ecole normale supérieure).
- Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December.
- Andrew Clark, . "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 415, University of Essex, Department of Economics.
- Freeman, Richard B, 1978.
"Job Satisfaction as an Economic Variable,"
American Economic Review,
American Economic Association, vol. 68(2), pages 135-41, May.
- Andrew E. Clark and Andrew J. Oswald, .
"Satisfaction and Comparison Income,"
Economics Discussion Papers
419, University of Essex, Department of Economics.
- Felix FitzRoy & Kornelius Kraft, 2005.
"Co-determination, Efficiency and Productivity,"
British Journal of Industrial Relations,
London School of Economics, vol. 43(2), pages 233-247, 06.
- Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
- Pierre Cahuc & AndrÃ© Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, June.
- Addison, John T., 2005.
"The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices,"
IZA Discussion Papers
1620, Institute for the Study of Labor (IZA).
- John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF - Faculdade de Economia, Universidade de Coimbra.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1760. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.