search query: @indexterm BUSINESS CYCLES / total: 529
reference: 258 / 529
| Author: | Schultz, C. |
| Title: | Wages and employment in a repeated game with revenue fluctuations |
| Journal: | European Economic Review
1997 : JAN, VOL. 41:1, p. 147-162 |
| Index terms: | BUSINESS CYCLES PAY EMPLOYMENT REVENUE TRADE UNIONS |
| Language: | eng |
| Abstract: | The real wage is suggested to be surprisingly flat over the business cycle by empirical investigations. The paper analyzes a repeated game btw. a union and a firm which can contribute to explaining the flat wage. The parties cannot enter binding contracts, and revenue is fluctuating. The paper focuses on the best subgame-perfect equilibrium among those sharing the expected surplus in given fixed shares. It is shown that this equilibrium has a more counter-cyclical wage, than what would be the case if the parties shared the surplus in each period in the same shares. |
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