Arbeitspapier
Unions and Firms' Investments: A Unified View
In this paper, we present a simple model in which a unionized and non-unionized firm optimally make investment decisions given their labor productivity. By allowing workers' organizations to have positive effects on labor effort, we find that the classic hold-up problem does not necessarily survive. We also derive conditions under which rent-seeking by unions may actually encourage firms' investments.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 12515
- Classification
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Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
- Subject
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labor unions
rent seeking
workers' effort
firms' investments
hold-up
- Event
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Geistige Schöpfung
- (who)
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Berton, Fabio
Dughera, Stefano
Ricci, Andrea
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
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2019
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Berton, Fabio
- Dughera, Stefano
- Ricci, Andrea
- Institute of Labor Economics (IZA)
Time of origin
- 2019