Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/23518
Authors: 
Haucap, Justus
Wey, Christian
Year of Publication: 
2003
Series/Report no.: 
Diskussionspapier 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: 
Document Type: 
Working Paper

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