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http://hdl.handle.net/10419/30060
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| Title: | | Unionisation structures and heterogeneous firms  |
| Authors: | | Braun, Sebastian |
| Issue Date: | | 2009 |
| Series/Report no.: | | Kiel working paper 1566 |
| Abstract: | | The effects of unions on productivity and firm performance have been the topic of extensive research. Existing studies have, however, primarily focused on firm-level bargaining and on markets that are characterised by a small and fixed number of identical firms. This paper studies how different unionisation structures affect firm productivity and firm performance in a monopolistic competition model with heterogeneous firms and free entry. While centralised bargaining induces tougher selection among heterogeneous producers and thus increases average productivity, firm-level bargaining allows less productive entrants to remain in the market. Centralised bargaining also results in higher average output and profit levels than either decentralised bargaining or a competitive labour market. From the perspective of consumers, the choice between centralised and decentralised bargaining involves a potential trade-off between product variety and product prices. |
| Subjects: | | Trade unions heterogeneous firms productivity firm performance |
| JEL: | | J24 J50 D43 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW
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