In contrast to the predictions of conventional economic theory, it is well documented that similar workers receive wages positively correlated with the size of the firm employing them. To explain these findings we augment the Waldman (1984) framework by adding a size variable and construct a...

This note analyzes the differences between strategic trade and domestic competition policies to regulate a unionized monopoly. In the presence of an industry-wide union, the entry of a domestic competitor does not reduce labor market distortions, while strategic trade policy reduces both labor...

In this paper I investigate the relationship between unionization and the size of the informal economy. Using a cross-country panel data for 30 countries over the period from 1960 to 2009, I find a strong and robust negative correlation between unionization and the size of the informal economy.

This paper investigates the patterns of bargaining in a multi-unit firm in the presence of labor unions coordination activities. It derives the bargaining regimes arising as sub-game perfect equilibria, considering both simultaneous and sequential games where parties choose whether to coordinate...

This paper identifies the workers who have access to family-friendly policies, and the correlation between these policies and worker demographics, using data from the Survey of Company Fringe Benefits. The study revealed that while women and low-income earners are more likely to use...

This paper presents a two-country model of duopolistic market with vertical relations which leads to a paradoxical result: when upstream firms possess sufficient bargaining power, cost-reducing FDI may actually enhance the rival firm's profit.

If "tax progression is good for employment in popular models of trade union behaviour" (Koskela and Vilmunen, 1996), then a flat-rate premium, as proposed as a means of funding for public health care, is bad. This note shows that replacing existing (proportional) social security contributions by...

It is well-known that the efficient-bargain model imposes no general restrictions on the slope of the contract curve. As a result, both upward- and downward-sloping curves are consistent with the theory. Less is known, however, about the effect on the contract curve of changes in the demand and...

The passage from the Malthusian Regime to the Modern Regime has been theoretically investigated only in recent times and the understanding of this process is still incomplete. This paper develops a neoclassical OLG model of neoclassical growth which embodies a stylised fact emerged in the second...

Considering Cournot competition, this note shows that, if the firms differ in labor productivities, the equilibrium wage rates under a centralized labor union are not independent of the number of firms and product differentiation if the labor union charges a uniform wage rate. However, if the...