|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/19067
|
| | |
| Title: | | Product market competition, profit sharing and equilibrium unemployment  |
| Authors: | | Koskela, Erkki Stenbacka, Rune |
| Issue Date: | | 2005 |
| Series/Report no.: | | CESifo working papers 1603 |
| Abstract: | | We investigate the implications of product market imperfections on profit sharing, wage negotiation and equilibrium unemployment. The optimal profit share, which the firms use as a wage-moderating commitment device, is below the bargaining power of the trade union. Intensified product market competition decreases profit sharing, but increases the negotiated base wage, because the wage-increasing effect of reduced profit sharing dominates the wage-reducing effect associated with a higher wage elasticity of labor demand. Finally, we show that intensified product market competition does not necessarily reduce equilibrium unemployment, because it induces both higher wage mark-ups and lower optimal profit shares. |
| Subjects: | | product market competition profit sharing wage bargaining equilibrium unemployment |
| JEL: | | L11 J51 J33 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/19067
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|