Choice of union-firm bargaining agenda and social welfare
This paper shows that with a strong labour union, bargaining over piece rate generates higher social welfare than bargaining over fixed wage. Moreover, this social welfare exceeds the social welfare under efficient bargaining level, if the union is very strong.
References listed on IDEAS
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- Edward P. Lazear, 1996.
"Performance Pay and Productivity,"
NBER Working Papers
5672, National Bureau of Economic Research, Inc.
- M. Ryan Haley, 2003. "The Response of Worker Effort to Piece Rates: Evidence from the Midwest Logging Industry," Journal of Human Resources, University of Wisconsin Press, vol. 38(4), pages -.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
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