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Centralized Bargaining, Multi-Tasking and Work Incentives

Author

Listed:
  • Lindbeck, Assar

    () (Stockholm University)

  • Snower, Dennis J.

    () (Kiel Institute for the World Economy)

Abstract

The paper examines the implications for wage bargaining of an important aspect of the ongoing reorganization of work - the move from occupational specialization toward multi-tasking. The analysis shows how, on account of such reorganization, centralized bargaining becomes increasingly inefficient and detrimental to firms’ profit opportunities, since it prevents firms from offering their employees adequate incentives to perform the appropriate mix of tasks. The paper also shows how centralized bargaining inhibits firms from using wages to induce workers to learn how to use their experience from one set of tasks to enhance their performance at other tasks. In this way, the paper may also help explain the increasing resistance to centralized bargaining in various advanced market economies.

Suggested Citation

  • Lindbeck, Assar & Snower, Dennis J., 1999. "Centralized Bargaining, Multi-Tasking and Work Incentives," IZA Discussion Papers 56, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp56
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    Cited by:

    1. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 353-376, July.

    More about this item

    Keywords

    information flows; wage formation; restructuring of firms; centralized wage bargaining; employment;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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