Unionization Structure And The Incentive For A Cross-Border Merger
Arijit Mukherjee () and
Indian Economic Review, 2016, vol. 51, issue 1, 129-145
This paper analyzes how domestic labour unions affect the incentive for a cross-border merger. We find it to crucially depend on the unionization structure (i.e., centralized or decentralized) and wage setting behavior (i.e., uniform or discriminatory). Under discriminatory wages, the incentive for a cross-border merger is higher under a centralized union. However, the opposite can be true under a uniform wage. Different from the literature, a higher product market concentration can make the workers better off under decentralized unions than under a centralized union. Counter intuitively, a centralized union may prefer a uniform wage than discriminatory wages if the latter wage setting behavior increases product market concentration.
Keywords: Decentralized Union; Centralized Union; Cross-border Merger; FDI (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:0115
Ordering information: This journal article can be ordered from
Access Statistics for this article
Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar
More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().