EconPapers    
Economics at your fingertips  
 

Competition, Work Rules and Productivity

Benjamin Bridgman ()

No 289, 2011 Meeting Papers from Society for Economic Dynamics

Abstract: More competitive markets are associated with higher productivity. However, changes in competition complicate productivity measurement since changing mark-ups may shift factor shares. This paper examines productivity measurement in markets with market power and restrictive work rules: rules that induce wages to be paid for non-productive labor hours. It develops a theoretical model to explain why workers would want restrictive work rules and how competition leads to their reduction. I model a monopoly firm whose workers dictate wages and work rules. Work rules allow workers to maintain both high levels of employment and wages. Competition reduce work rules and increase productivity by lowering mark-ups. The theoretical findings are consistent with the empirical literature on the impact of increasing competitive pressure on productivity.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2011/paper_289.pdf (application/pdf)

Related works:
Journal Article: Competition, work rules and productivity (2015) 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: https://EconPapers.repec.org/RePEc:red:sed011:289

Access Statistics for this paper

More papers in 2011 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2021-03-28
Handle: RePEc:red:sed011:289