This paper considers collective bargaining in a public sector institutional setting. The model demonstrates how budget constraints and hierarchical structure affect the bargaining outcome. A trade union bargains over wage and employment either with an output-maximizing bureau or the bureau’s sponsoring institution. The slope of the contract curve depends on the bargaining level because the budg...

The collective approach to household behaviour models the household utility function as the weighted average of the utilities of the individual members of the household. These weights, which measure the relative bargaining power of males and females within the household, are generally regarded as fixed and exogenous. The paper extends the collective approach and estimates a model where the weig...

Using a large-scale linked-employer-employee data set from western Germany, this paper presents new evidence on the wage premium of collective bargaining contracts. In contrast to previous studies, we seek to assess the extent to which differences in wages between workers in covered and uncovered firms arise from the non-random selection of workers and firms into collective bargaining coverage....

lndustrial disputes in general are settled through the mechanism of collective bargaining at the initial stage. The failure of collective bargaining leads the disputes to the system of conciliation under the statutory compulsion. The lndustrial Disputes Act 1947 under Section 2(K) defines the industrial dispute as "any dispute or difference between employers and employers or between employers a...

This paper provides novel evidence on the role of labor unions in firms’ corporate cash policy. Examining unionization rates firms across 29 countries for period 2004–2015, we show that respond to an increase rate by decreasing their holdings. The reported effect is symmetric, increases (decreases) (increasing) buffers. These results are consistent with bargaining hypothesis, namely, strategica...