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Title:Unionisation Structures and Innovation Incentives PDF Logo
Authors:Haucap, Justus
Wey, Christian
Issue Date:2003
Series/Report no.:Diskussionspapier / Helmut-Schmidt-Universität Hamburg, Fächergruppe Volkswirtschaftslehre 21
Abstract:This paper examines how different unionisation structures affect firms? innovation incentives and industry employment. We distinguish three modes of unionisation with increasing degree of centralisation: (1) ?Decentralisation? where wages are determined independently at the firm-level, (2) ?coordination? where one industry union sets individual wages for all firms, and (3) ?centralisation? where an industry union sets a uniform wage rate for all firms. While firms? investment incentives are largest under ?centralisation?, investment incentives are non-monotone in the degree of centralisation: ?Decentralisation? carries higher investment incentives than ?coordination?. Labour market policy can spur innovation by decentralising unionisation structures or through non-discrimination rules.
JEL:L13
K31
J50
D43
Persistent Identifier of the first edition:urn:nbn:de:gbv:705-opus-1581
Document Type:Working Paper
Appears in Collections:Diskussionspapiere, Fächergruppe VWL, Helmut-Schmidt-Universität

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