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When is there more employment, with individual or collective wage bargaining?

José Ramón García Martínez and Valeri Sorolla i Amat

No 2017-87, Economics Discussion Papers from Kiel Institute for the World Economy (IfW)

Abstract: In a standard Diamond-Mortensen-Pissarides labour market with frictions, the authors seek to determine when there is more employment with individual wage bargaining than with collective wage bargaining, using a wage equation generated by the standard total surplus sharing rule. Using a Cobb-Douglas production function (AL,

Keywords: Matching Frictions; Unemployment; Individual and Collective Wage Setting (search for similar items in EconPapers)
JEL-codes: E24 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2017
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https://www.econstor.eu/bitstream/10419/170532/1/100118453X.pdf (application/pdf)

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