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When is there more employment, with individual or collective wage bargaining?

Author

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  • García Martínez, José Ramón
  • Sorolla i Amat, Valeri

Abstract

In a standard Diamond-Mortensen-Pissarides labour market with frictions, the authors seek to determine when there is more employment with individual wage bargaining than with collective wage bargaining, using a wage equation generated by the standard total surplus sharing rule. Using a Cobb-Douglas production function (AL,

Suggested Citation

  • García Martínez, José Ramón & Sorolla i Amat, Valeri, 2017. "When is there more employment, with individual or collective wage bargaining?," Economics Discussion Papers 2017-87, Kiel Institute for the World Economy.
    • Handle: RePEc:zbw:ifwedp:201787
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    References listed on IDEAS

    as
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    2. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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