Arbeitspapier
Unionization structures and firms incentives for productivity enhancing investments
This paper examines how unionization structures that differ in the degree of wage centralization affect firms' incentives to increase labor productivity. We distinguish three modes of unionization with increasing degree of centralization: (1) “Decentralization” where wages are determined independently at the firm-level, (2) “coordination” where an industry union sets individual wages for all firms at the firmlevel, and (3) “centralization” where a uniform wage rate is set for the entire industry. We show that firms' investment incentives are largest under complete centralization. However, investment incentives are non-monotone in the degree of centralization so that “decentralization” carries higher investment incentives than “coordination.” Depending on the innovation outcome, workers' wage bill is maximized under “centralization” if firms' productivity differences remain small. Otherwise, workers prefer an intermediate degree of centralization, which holds innovative activity down at its lowest level. Labor market policy can spur innovation by either decentralizing unionization structures or by imposing non-discrimination rules on monopoly unions.
- Sprache
-
Englisch
- Erschienen in
-
Series: WZB Discussion Paper ; No. FS IV 02-10
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Labor Law
Oligopoly and Other Imperfect Markets
- Thema
-
Unions
Oligopoly
Innovation
Productivity
Wage-Setting Centralization
Labor Market Flexibility
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Haucap, Justus
Wey, Christian
- Ereignis
-
Veröffentlichung
- (wer)
-
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
- (wo)
-
Berlin
- (wann)
-
2002
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Haucap, Justus
- Wey, Christian
- Wissenschaftszentrum Berlin für Sozialforschung (WZB)
Entstanden
- 2002
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