A THEORY OF WAGES AND LABOR DEMAND WITH INTRA-FIRM BARGAINING AND MATCHING FRICTIONS
Pierre Cahuc,
Francois Marque and
Etienne Wasmer
International Economic Review, 2008, vol. 49, issue 3, 943-972
Abstract:
This article provides a model of labor market equilibrium with search and within-firm strategic bargaining. We yield explicit closed form solutions with heterogeneous labor inputs and capital. The solution exhibits overemployment. We show that higher relative bargaining power for some groups of workers may lead to overemployment relative to other groups, with such other groups being underemployed instead if they have a lower relative bargaining power. Similarly, the hold-up problem between capitalists and employees does not necessarily lead to underinvestment in physical capital. Copyright © 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (119)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: A theory of wages and labor demand with intra-firm bargaining and matching frictions (2008)
Working Paper: A theory of wages and labor demand with intra-firm bargaining and matching frictions (2008)
Working Paper: A Theory of Wages and Labour Demand with Intra-firm Bargaining and Matching Frictions (2004) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:49:y:2008:i:3:p:943-972
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598
Access Statistics for this article
International Economic Review is currently edited by Harold L. Cole
More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().