search query: @indexterm BARGAINING / total: 425
reference: 10 / 425
| Author: | Boeri, T. Burda, M.C. |
| Title: | Preferences for collective versus individualised wage setting |
| Journal: | Economic Journal
2009 : OCT, VOL. 119:540 p. 1440-1463 |
| Index terms: | unemployment labour markets pay bargaining workers models |
| Language: | eng |
| Abstract: | Standard models of equilibrium unemployment presume exogenous labour market institutions and flexible salary determination. This article proposes a model of wage rigidity and collective bargaining endogenously, when workers differ by observable skill and may adopt either individualised or collective wage bargaining. In the calibrated model, a substantial fraction of workers and firms as well as the median voter prefer collective bargaining to the decentralised regime. A fundamental distortion of the separation decision represented by employment protection (a firing tax) is necessary for such preferences to emerge. Endogenizing collective bargaining can significantly modify comparative statics influence of policy arising in a single-regime setting. |
SCIMA