Labor Unionization Structure, Innovation, and Welfare

Tien- Der Han and Arijit Mukherjee

Journal of Institutional and Theoretical Economics (JITE), 2017, vol. 173, issue 2, 279-300

Abstract: We show the effects of cooperation among the labor unions with complementary workers on innovation, consumer surplus, and welfare. Although cooperation among the unions reduces wages, it may either increase or decrease the firm's incentive for innovation, and may also make the consumers and the society worse off by reducing innovation. While cooperation (compared to noncooperation) among the unions makes the workers better off, it may not make all final-goods producers better off.

JEL-codes: D43 J51 L13 O31 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1628/093245616X14785139493983

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