Economics at your fingertips  

Unions and Firms' Investments: A Unified View

Fabio Berton (), Stefano Dughera and Andrea Ricci ()
Additional contact information
Stefano Dughera: University Paris Ouest-Nanterre
Andrea Ricci: INAPP – Institute for Public Policy Analysis

No 12515, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we present a simple model in which a unionized and non-unionized firm optimally make investment decisions given their labor productivity. By allowing workers' organizations to have positive effects on labor effort, we find that the classic hold-up problem does not necessarily survive. We also derive conditions under which rent-seeking by unions may actually encourage firms' investments.

Keywords: labor unions; rent seeking; workers' effort; firms' investments; hold-up (search for similar items in EconPapers)
JEL-codes: J51 O31 O32 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2019-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: Unions and Firms' Investments. A Unified View (2019) Downloads
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:

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

Page updated 2020-09-20
Handle: RePEc:iza:izadps:dp12515