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:|
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Web page: http://www.uni-tuebingen.de/en/faculties/wirtschafts-und-sozialwissenschaftliche-fakultaet/faecher/wirtschaftswissenschaft.html
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- 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.
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- Arnsperger, Christian & de la Croix, David, 1990.
"Wage Bargaining with a Price-Setting Firm,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 42(4), pages 285-98, October.
- 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).
- 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.
- Huw. D. Dixon & Claus T. Hansen & Henrik J. Kleven, . "Dual Labour Markets and Menu Costs: Explaining the Cyclicality of Productivity and Wage Differentials," Discussion Papers 99/1, Department of Economics, University of York.
- 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
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- 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.
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"Monopolistic Competition and Optimum Product Diversity,"
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- 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.
- Gerard J. van den Berg & Geert Ridder, 1998. "An Empirical Equilibrium Search Model of the Labor Market," Econometrica, Econometric Society, vol. 66(5), pages 1183-1222, September.
- Barry McCormick, 1990. "A Theory of Signalling During Job Search, Employment Efficiency, and "Stigmatised" Jobs," Review of Economic Studies, Oxford University Press, vol. 57(2), pages 299-313.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991.
"Unemployment: Macroeconomic Performance and the Labour Market,"
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- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, December.
- 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.
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- 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.
- Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
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