search query: @author Teulings, C. / total: 3
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| Author: | Teulings, C. |
| Title: | A new theory of corporatism and wage setting |
| Journal: | European Economic Review
1997 : VOL. 41:3-5, p. 659-670 |
| Index terms: | PAY THEORIES ECONOMICS |
| Language: | eng |
| Abstract: | The standard view on corporatist institutions for wage setting in many European economies is based on the insider-outsider model. Corporatism is associated with lack of wage flexibility. This paper discusses a new approach starting from the importance of nominal contracts. The rationale for these contracts is to avoid future bargaining. Adjusting these contracts ex post to aggregate shocks would raise their efficiency. However, avoiding the bargaining required for this adjustment was the main reason for negotiating these contracts in the first place. |
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