|
EconStor >
Technische Universität Dresden >
Fakultät Wirtschaftswissenschaften, Technische Universität Dresden >
Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/22754
|
| | |
| Title: | | Minimum Wages and Union Bargaining in a Dual Labour Market  |
| Authors: | | Dittrich, Marcus |
| Issue Date: | | 2007 |
| Series/Report no.: | | Dresden discussion paper in economics 13/07 |
| Abstract: | | The paper analyses the links between a binding minimum wage and union bargaining. A dual labour market model is developed where the first sector outcome is characterised by bargaining between unions and firms, while in the second sector firms have to pay a statutory minimum wage. It is shown that a minimum wage increase has negative employment effects only if the bargaining outcome is described by the Nash solution. However, this result does not hold if the Kalai-Smorodinsky solution is applied to model union bargaining. A higher minimum wage can then lead to more employment in the unionised sector and to a lower unemployment rate. |
| Subjects: | | Minimum wages union bargaining Nash approach Kalai-Smorodinsky solution |
| JEL: | | J30 C78 J51 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/22754
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|