EconPapers    
Economics at your fingertips  
 

Wage Bargaining, Holdout, and Inflation

Steinar Holden ()

Oxford Economic Papers, 1997, vol. 49, issue 2, 235-55

Abstract: In many countries, it is customary that production continues under the terms of the old contract during wage negotiations (holdout), unless a work stoppage is initiated. This paper analyzes a model where the workers deliberately work less efficiently during a holdout, while the firm reduces bonus payments. If a holdout is more costly to the firm than to the workers, the wage bargaining will result in a nominal wage increase. The model implies a Phillips curve that consists of two vertical parts; one with high inflation and low unemployment and one with low inflation and high unemployment. Copyright 1997 by Royal Economic Society.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819970 ... 0.CO%3B2-F&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:oup:oxecpp:v:49:y:1997:i:2:p:235-55

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-05-24
Handle: RePEc:oup:oxecpp:v:49:y:1997:i:2:p:235-55