Gradual collective wage bargaining

Sabien Dobbelaere and Roland Iwan Luttens

Labour Economics, 2016, vol. 40, issue C, 37-42

Abstract: This paper presents an alternative implementation of firm-level collective wage bargaining, where bargaining proceeds as a finite sequence of sessions between a firm and a union of variable size. We investigate the impact of such a ‘gradual’ union on the wage-employment contract in an economy with concave production. In a static framework, the resulting equilibrium is equivalent to the efficient bargaining outcome. In a dynamic framework with search frictions, we demonstrate that gradual collective wage bargaining coincides with all-or-nothing bargaining when bargaining takes place in fictitious time before production.

Keywords: Collective bargaining; Gradual union; Firm; Search frictions; Employment-at-will. (search for similar items in EconPapers)
JEL-codes: J30 J41 J51 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Gradual Collective Wage Bargaining (2016)
Working Paper: Gradual Collective Wage Bargaining (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:40:y:2016:i:c:p:37-42

DOI: 10.1016/j.labeco.2016.03.001

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