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| Joerg Lingens |
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| ''Timing is Everything - The Labour Market Effects of Union Wage Bargaining'' |
| ( 2007, Vol. 10 No.5 ) |
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| This paper analyses the labour market effects of union wage bargaining for different sequences of the employment choice and the wage bargain. The result that collective bargaining decreases (firm-level) employment in a right-to-manage setting hinges on the assumption that employment is chosen by the firm after the wage bargain ("ex-ante" bargaining). Turning this sequence upside down ("ex-post" bargaining), the firm uses employment choice as a strategic variable for the wage bargain. Employment will be equal to the competitive case and wages will be higher. Although we strictly assume right-to-manage, the timing of the bargain ensures an efficient contract. |
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| Keywords: right-to-manage |
JEL: J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining: General
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| Manuscript Received : Apr 11 2007 | | Manuscript Accepted : Apr 30 2007 |
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