Wage Bargaining and Monopsony
This paper identifies three possible outcomes of higher relative firm bargaining power in a unionized firm facing an upward sloping labor supply curve. The conventional regime with reduced wage and higher employment corresponds to firm bargaining power below a certain critical value. A supply constrained regime where increased firm bargaining power reduces both wages and employment occurs when the bargaining power is above another critical level. A novel result is that we identify a third regime, with firm bargaining power between these critical levels, where changes in relative bargaining power does not affect wages and employment.
|Date of creation:||01 Sep 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 73 59 19 40
Fax: 73 59 69 54
Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
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.:
- Svejnar, J., 1984.
"Bargaining power, fear of disagreement and wage settlements: theory and evidence from U.S. industry,"
CORE Discussion Papers
1984037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Svejnar, Jan, 1986. "Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from U.S. Industry," Econometrica, Econometric Society, vol. 54(5), pages 1055-78, September.
- SVEJNAR, Jan, . "Bargaining power, fear of disagreement, and wage settlements: theory and evidence from U.S. industry," CORE Discussion Papers RP -720, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-34, July.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Douglas Staiger & Joanne Spetz & Ciaran Phibbs, 1999.
"Is There Monopsony in the Labor Market? Evidence from a Natural Experiment,"
NBER Working Papers
7258, National Bureau of Economic Research, Inc.
- Douglas O. Staiger & Joanne Spetz & Ciaran S. Phibbs, 2010. "Is There Monopsony in the Labor Market? Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 211-236, 04.
- Douglas Staiger & Joanne Spetz & Ciaran Phibbs, 2008. "Is There Monopsony In The Labor Market? Evidence From A Natural Experiment," Working Papers 1115, Princeton University, Department of Economics, Industrial Relations Section..
- Oswald, Andrew J., 1993.
"Efficient contracts are on the labour demand curve : Theory and facts,"
Elsevier, vol. 1(1), pages 85-113, June.
- Oswald, A. J., 1995. "Efficient contracts are on the labour demand curve: Theory and facts," Labour Economics, Elsevier, vol. 2(1), pages 102-102, March.
- Andrew Oswald, 1984. "Efficient Contracts are on the Labour Demand Curve: Theory and Facts," Working Papers 555, Princeton University, Department of Economics, Industrial Relations Section..
- Falch, Torberg & Strom, Bjarne, 2007.
"Wage bargaining and monopsony,"
Elsevier, vol. 94(2), pages 202-207, February.
- William M. Boal & Michael R. Ransom, 1997. "Monopsony in the Labor Market," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 86-112, March.
- McDonald, Ian M & Suen, Anthony, 1992. "On the Measurement and Determination of Trade Union Power," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 209-24, May.
- Valletta, Robert G, 1993. "Union Effects on Municipal Employment and Wages: A Longitudinal Approach," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 545-74, July.
- Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, vol. 101(407), pages 835-54, July.
- Babcock, Linda C & Engberg, John & Glazer, Amihai, 1997. "Wages and Employment in Public-Sector Unions," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 532-43, July.
- Courant, Paul N & Gramlich, Edward M & Rubinfeld, Daniel L, 1979. "Public Employee Market Power and the Level of Government Spending," American Economic Review, American Economic Association, vol. 69(5), pages 806-17, December.
- Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
- Bulkley, George & Myles, Gareth D., 2001.
"Individually rational union membership,"
European Journal of Political Economy,
Elsevier, vol. 17(1), pages 117-137, March.
- Clask, A. & Oswald, A., 1992. "Trade Union Utility Functions: A survey of Union Leaders' Views," Economics Series Working Papers 99132, University of Oxford, Department of Economics.
- David Blanchflower & Alex Bryson, 2002. "Changes over time in union relative wage effects in the UK and the US revisited," NBER Working Papers 9395, National Bureau of Economic Research, Inc.
- John DiNardo & David S. Lee, 2002. "The Impact of Unionization on Establishment Closure: A Regression Discontinuity Analysis of Representation Elections," NBER Working Papers 8993, National Bureau of Economic Research, Inc.
- Falch, Torberg, 2001. "Collective bargaining in the public sector and the role of budget determination," European Journal of Political Economy, Elsevier, vol. 17(1), pages 75-99, March.
- Marlow, Michael L & Orzechowski, William, 1996. " Public Sector Unions and Public Spending," Public Choice, Springer, vol. 89(1-2), pages 1-16, October.
- Alogoskoufis, George & Manning, Alan, 1991. "Tests of alternative wage employment bargaining models with an application to the UK aggregate labour market," European Economic Review, Elsevier, vol. 35(1), pages 23-37, January.
When requesting a correction, please mention this item's handle: RePEc:nst:samfok:4304. 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: (Marit Balstad Jensen)The email address of this maintainer does not seem to be valid anymore. Please ask Marit Balstad Jensen to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.