This paper analyses the scope for collusive behaviour within the context of an international duopoly supergame in which both firms and monopoly labour unions interact strategically. We find that the presence of unions, implying an endogenisation of production costs, dramatically alters the incentives for inter-firm collusion. There are, however, strong incentives for the unions to collude, rais...

The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing We combine profit sharing for high-skilled workers and outsourcing of low-skilled tasks in partly imperfect dual domestic labour markets, when the wage rate for low-skilled worker is set by a labor union, to analyze how the implementation of profit sharing influence flexible outsourcing and low-skilled labour market out...

We examine the impact of economic deregulation on employer evasion of union-mandated ‘formal’ wage-contracts in an import-competing industry. We show that, if the state maintains industrial employment despite import liberalisation, through cheaper credit to firms, then employer evasion will increase, due to a rise in the formal-informal wage gap. Institutional delays in punishment of employer e...

The ability to engineer real wage cuts in centralized labor markets has depended on exchange rate interventions. This paper provides some structure to the question of how a monetary union would a¤ect the connection between bargaining structure and macroeconomic performance. The results indicate that the precautionary saving motive in anticipation of transitory terms of trade shock is signi...ca...

We use linked employer-employee data to investigate the job satisfaction effect of unionisation in Britain. We depart from previous studies by developing a model that simultaneously controls for the endogeneity of union membership and union recognition. We show that a negative association between membership and satisfaction only emerges where there is a union recognised for bargaining, and that...

Experimental literature has shown that social preferences influence how individuals bargain and make sharing decisions. It usually considers situations in which individuals negotiate on a single issue. This paper explores a different environment and reports on an experiment based on a non-cooperative game in which the choice of the bargaining agenda is endogenous. We fnd that firms reveal a str...

In this paper we analyse the relative importance of individual ability and labour market institutions, including public sector wage setting and trade unions, in determining earnings differences across different types of employment. To do this we use the KwaZulu-Natal Income Dynamics Study data from South Africa, which show extremely large average earnings differentials across different types of...

In this paper we consider a standard policy game between the Government and a union. In such a framework, we first investigate the effects of corporatism on macroeconomic performance vis -à-vis different kinds of non-cooperative equilibria. Afterwards, we introduce in the literature the issue of the feasibility of corporatism, i.e., whether and under what conditions it is in the interest of bot...

Using an economic geography model, we analyze the impact of an increase in trade unions’ bargaining strength on firms’ location decision. We show that an increase in workers’ bargaining power entails two effects. On the one hand, the standard labor cost effect induces firms to relocate their production abroad. On the other hand, trade unions, by stealing profits from foreign capitalists, create...

Crosslinking is a ubiquitous strategy in polymer engineering to increase the thermomechanical robustness of solid polymers but has been relatively unexplored context ?-conjugated (semiconducting) polymers. Notwithstanding, mechanical stability key many envisioned applications organic electronic devices. For example, wide-scale distribution photovoltaic devices incorporating conjugated may depen...