TY  - GEN
AB  - This paper analyzes the implications of right-to-manage wage bargaining between a producers' syndicate and a workers' union representing finite numbers of identical members in a monetary macroconomic model of the AS-AD type with government activity. At given prices and price expectations, nominal wages are set according to a Nash bargaining agreement. Producers then choose labor demand and commodity supply to maximize profits at given output prices. The commodity market clears in a competitive fashion. Unique temporary equilibria are shown to exist for each level of relative power of the union. These equilibria may exhibit under- or overemployment, depending on the level of union power.
The paper presents a complete comparative-statics analysis of the temporary equilibrium, in particular of the role of union power on employment, wages, and income distribution, including a variety of different qualitative features compared to the situation under efficient bargaining. These differences arise primarily from a supply-side effect of union power under the right-to-manage approach as compared to a demand-side effect under efficient bargaining.
In addition, the dynamic evolution under perfect foresight is monotonic with two co-existing balanced steady states, one of which is stable under certain conditions. These
properties are qualitatively identical to those under efficient bargaining or under perfect competition.
DA  - 2014
KW  - Collective Bargaining
KW  - Nash Bargaining
KW  - Union Power
KW  - Aggregate Supply-Aggregate Demand
KW  - Government Deficits
KW  - Perfect Foresight
KW  - Dynamics
KW  - Stability
LA  - eng
PY  - 2014
SN  - 0931-6558
SP  - 35-
TI  - Wage Bargaining, Employment, and Union Power: The Right-to-Manage Approach
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-26753389
Y2  - 2024-11-21T17:34:09
ER  -