Competition, External Economies of Scale, and Unionized Wage

Debasmita Basak () and Arijit Mukherjee
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Debasmita Basak: Nottingham University Business School, Jubilee Campus, Wollaton Road

Journal of Industry, Competition and Trade, 2021, vol. 21, issue 4, No 6, 585-592

Abstract: Abstract We provide a rationale for the mixed relationship between product market competition and unionized wage, and more importantly, for a generally unexplained empirical evidence of a positive relationship between product market competition and unionized wage. We show that a higher product market competition decreases (increases) unionized wage if the external scale economies are weak (strong). However, a higher product market competition may decrease or increase the unionized wage if the external scale economies are moderate.

Keywords: Competition; External economics of scale; Pricing (search for similar items in EconPapers)
JEL-codes: J51 L13 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10842-021-00369-1

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