Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2016-01-22
Number: 16-004/V
Author-Name: Sabien Dobbelaere
Author-Workplace-Name: VU University Amsterdam, the Netherlands
Author-Name: Roland Iwan Luttens
Author-Workplace-Name: VU University Amsterdam, and Amsterdam University College, the Netherlands
Title: Gradual Collective Wage Bargaining
Abstract: This paper presents an alternative implementation of firm-level collective wage bargaining, where bargaining proceeds as a finite sequence of sessions between a firm and a union of variable size. We investigate the impact of such a `gradual' union on the wage-employment contract in an economy with concave production. In a static framework, the resulting equilibrium is equivalent to the efficient bargaining outcome. In a dynamic framework with search frictions, we demonstrate that gradual collective wage bargaining coincides with all-or-nothing bargaining when bargaining takes place in fictitious time before production.
Classification-JEL: J30, J41, J51
Keywords: collective bargaining, gradual union, firm, search frictions, employment-at-will
File-Url: https://papers.tinbergen.nl/16004.pdf
File-Format: application/pdf
File-Size: 168335 bytes
Handle: RePEc:tin:wpaper:20160004