Unions, monopolistic competition and unemployment
This paper develops a general equilibrium dual labour market model which incorporates union bargaining with monopolistically competitive firms. It is shown that not only the degree of union bargaining power but also the market power firms possess on the product market have a positive influence on unemployment. The reason for this is that less intense product market competition increases the negotiated wage rates as well as the price mark-up firms charge over their marginal costs, both of which reduce labour demand. It is also shown that higher competition intensity will force firms to merge to larger units.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.uni-tuebingen.de/en/faculties/wirtschafts-und-sozialwissenschaftliche-fakultaet/faecher/wirtschaftswissenschaft.html
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.:
- Bulow, Jeremy I & Summers, Lawrence H, 1986.
"A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(3), pages 376-414, July.
- Jeremy I. Bulow & Lawrence H. Summers, 1985. "A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment," NBER Working Papers 1666, National Bureau of Economic Research, Inc.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Gerard J. van den Berg & Geert Ridder, 1998.
"An Empirical Equilibrium Search Model of the Labor Market,"
Econometric Society, vol. 66(5), pages 1183-1222, September.
- Berg, G.J. & Ridder, G., 1993. "An empirical equilibrium search model of the labour market," Serie Research Memoranda 0039, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- McDonald, Ian M & Solow, Robert M, 1985. "Wages and Employment in a Segmented Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 100(4), pages 1115-41, November.
- Christian ARNSPERGER & David DE LA CROIX, 1990.
"Wage Bargaining with a Price-Making Firm Right-to-Manage and Efficient Bargaining,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1990007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- McCormick, Barry, 1990. "A Theory of Signalling during Job Search, Employment Efficiency, and "Stigmatised" Jobs," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 299-313, April.
- Roberts, Mark A. & Staehr, Karsten & Tranaes, Torben, 2000.
"Two-stage bargaining with coverage extension in a dual labour market,"
European Economic Review,
Elsevier, vol. 44(1), pages 181-200, January.
- Mark A. Roberts & Karsten Stæhr & Torben Tranæs, . "Two-Stage Bargaining with Coverage Extension in a Dual Labour Market," EPRU Working Paper Series 97-28, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Mark A. Roberts & Karsten Stæhr & Torben Tranæs, 1997. "Two-Stage Bargaining with Coverage Extension in a Dual Labour Market," Discussion Papers 97-13, University of Copenhagen. Department of Economics.
- Laing, Derek, 1993. "A Signalling Theory of Nominal Wage Inflexibility," Economic Journal, Royal Economic Society, vol. 103(421), pages 1493-1510, November.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173, March.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, March.
- Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
- Nickell, S & Vainiomaki, J & Wadhwani, S, 1994. "Wages and Product Market Power," Economica, London School of Economics and Political Science, vol. 61(244), pages 457-73, November.
- Brown, James N & Ashenfelter, Orley, 1986.
"Testing the Efficiency of Employment Contracts,"
Journal of Political Economy,
University of Chicago Press, vol. 94(3), pages S40-S87, June.
- Amitava Dutt & Anindya Sen, 1997. "Union bargaining power, employment, and output in a model of monopolistic competition with wage bargaining," Journal of Economics, Springer, vol. 65(1), pages 1-17, February.
- Huw. D. Dixon & Claus T. Hansen & Henrik J. Kleven, .
"Dual Labour Markets and Menu Costs: Explaining the Cyclicality of Productivity and Wage Differentials,"
99/1, Department of Economics, University of York.
- Huw David Dixon & Claus Thustrup Hansen & Henrik J. Kleven, . "Dual Labour Markets and Menu Costs: Explaining the Cyclicality of Productivity and Wage Differentials," EPRU Working Paper Series 99-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:zbw:tuedps:180. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.