Optimum organization of the labor market in a small open economy

Niels Blomgren-Hansen

Labour Economics, 2012, vol. 19, issue 2, 222-231

Abstract: In Denmark labor has been organized in independent but cooperating craft unions for more than a century. Within an extremely simple model of a small open economy facing imperfect competition, we analyze four different ways of organizing the labor market and show that the Danish model (partial centralization of the wage setting process) may be accounted for as the outcome of a two-stage Nash bargaining game, being robust in relation to changes in market conditions, and likely close to optimum from the point of view of society as a whole.

Keywords: Labor market organization; Wage bargaining; Craft unions; Industrial cartels (search for similar items in EconPapers)
JEL-codes: D23 J5 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:19:y:2012:i:2:p:222-231

DOI: 10.1016/j.labeco.2011.10.005

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