Centralised wage bargaining and regional unemployment
S. Zeilstra Annette (a.s.zeilstra@eco.rug.nl) and
A Toolsema Linda (l.a.toolsema@eco.rug.nl)
ERSA conference papers from European Regional Science Association
Abstract:
This paper studies regional labour markets in a country with centralised wage bargaining. We use a four-stage theoretical model with two regions and one sector. In the first stage the union and employer federation engage in Nash bargaining at the national level according to a Right To Manage (RTM) model. In the second stage the individual employers determine the number of employees they want to hire given the outcome of the national wage bargaining. In the third stage individuals decide whether or not they want to migrate to another region and if they want to participate in the labour market or not. In the fourth stage the product market clears. In this model, depending on the parameters, the change in participation and the level of migration determine the distribution of unemployment over the regions.
Date: 2005-08
New Economics Papers: this item is included in nep-geo and nep-lab
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/720.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa05p720
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier (gunther.maier@wu.ac.at).