Please use this identifier to cite or link to this item:
Wey, Christian
Haucap, Justus
Year of Publication: 
Series/Report no.: 
DIW Discussion Papers 398
This paper examines how di¤erent unionisation structures affect firms` innovation incen- tives 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.
Document Type: 
Working Paper

Files in This Item:
265.49 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.