search query: @all regulation / total: 2082
reference: 4 / 2082
| Author: | Aghion, P. Cahue, P. Algan, Y. |
| Title: | Civil society and the state: the interplay between cooperation and minimum wage regulation |
| Journal: | Journal of the European Economic Association
2011 : FEB, VOL. 9:1, p. 3-42 |
| Index terms: | co-operation pay minimum wage regulations negotiation labour markets employment policy industrial relations employees' organizations |
| Language: | eng |
| Abstract: | In a cross-section of countries, state regulation of labour markets negatively correlates with labour relations quality. In this article, we argue that these facts reflect different manners of labor markets regulation, either through the state or the civil society, depending on the extent of cooperation in the economy. These facts are rationalized using a model of learning of the quality of labor relations. Distrustful labor relations result in low unionization and high demand for direct wage regulation by state. However, state regulation crowds out the opportunity for workers to experiment negotiation and learn about the potential cooperative characteristics of labor relations. This effect can enable multiple equilibria: a 'good' equilibrium with cooperative labor relations and high unionization, leading to low state regulation; and a 'bad' equilibrium with distrustful labor relations, low union density, and strict state regulation of the minimum wage. |
SCIMA