Authors: Gu, Yiquan
Title: Wage and employment effects of workplace representation: a "Right To Co-Manage" model
Language (ISO): en
Abstract: This paper introduces a two-stage union-oligopoly-council model of wage and employment determination wherein at the first stage wage is negotiated through collective bargaining and at the second stage employment in each firm is co-determined by the employer and its works council. We provide a full characterization of the model outcome for all parameter values of bargaining power and co-determination power. In particular, works councils always increase employment while their impact on wage can be non-monotonic. Overall, individual works councils’ pursuit of own workers’ interests may well harm the workers as a union. JEL-Classification: J50; J54; L13
Subject Headings: Firm-council co-determination
Union-oligopoly bargaining
Workplace representation
Issue Date: 2010-03-29T08:33:59Z
Appears in Collections:Sonderforschungsbereich (SFB) 823

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