Product market competition, external economies of scale and unionized wage
Although empirical evidence shows that higher product market competition increases unionized wage, the theoretical literature did not pay much attention to this aspect. We show that the positive relation between product market competition and unionized wage may occur in the presence of external economies of scale. In this respect, the labor productivity and the effects of the external economies of scale may play important roles.
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- David A. Macpherson & James B. Stewart, 1990. "The effect of international competition on union and nonunion wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(4), pages 434-446, April.
- John M. Abowd & Joseph S. Tracy, 1988. "Market Structure, Strike Activity, and Union Wage Settlements," NBER Working Papers 2595, National Bureau of Economic Research, Inc.
- Paulo Bastos & Udo Kreickemeier & Peter W. Wright, 2010. "Open-shop unions and product market competition," Canadian Journal of Economics, Canadian Economics Association, vol. 43(2), pages 640-662, May.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
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