Choice of union-firm bargaining agenda and social welfare

Rupayan Pal ()

Public Economics from EconWPA

Abstract: This paper shows that with a strong labour union, bargaining over piece rate generates higher social welfare than bargaining over fixed wage. Moreover, this social welfare exceeds the social welfare under efficient bargaining level, if the union is very strong.

Keywords: Bargaining; Fixed wage; Piece rate; Social welfare; Union (search for similar items in EconPapers)
JEL-codes: D60 J33 J51 L21 C78 (search for similar items in EconPapers)
Date: 2005-07-27
Note: Type of Document - pdf; pages: 8
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:0507014

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