Can Labor Market Imperfections Cause Overprovision of Public Inputs?

Diego Martínez and Tomas Sjögren

No 09.13, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: In a model where trade unions dominate the labor market, a relationship is derived between the rate of unemployment and the provision of a public input in the production. This relationship implies that for conventional rates of unemployment, the public input will be overprovided compared to the first-best level.

Keywords: Public Inputs; Trade Unions. (search for similar items in EconPapers)
JEL-codes: H41 J51 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2009-11
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (2)

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http://www.upo.es/serv/bib/wps/econ0913.pdf First version, 2009 (application/pdf)

Related works:
Working Paper: Can Labor Market Imperfections Cause Overprovision of Public Inputs? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:09.13

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