Employment effects of centralization in wage setting in a median voter model

Johannes Ludsteck

No 200602, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Most models on centralization in wage setting rest on the assumption of identical firms. This stands in sharp contrast to informal statements against centralization wich rest on the argument that firms are heterogenous and that equal treatment of firms by unions must therefore be ineffcient. We analyse one aspect of this debate in the framework of a median voter model with heterogenous firms but we don't find unique negative employment effects. It may be cumbersome or even impossible to check whether the conditions for unique effects are met. Explorative investigations of the magnitude of the implied effects show however, that they are noteworthy only if differences between firms are large." (Author's abstract, IAB-Doku) ((en))

Keywords: Beschäftigungseffekte; Effizienz; Gewerkschaft; Lohnfindung; Lohntheorie; Tarifverhandlungen; Arbeitsmarkttheorie; Zentralisierung (search for similar items in EconPapers)
JEL-codes: J51 J52 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006
New Economics Papers: this item is included in nep-lab and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200602

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