Labor unionization structure, innovation, and welfare
journal contributionposted on 2021-01-25, 14:56 authored by Tien-Der HanTien-Der Han, Arijit Mukherjee
We show the effects of cooperation among the labor unions with complementary workers on innovation, consumer surplus, and welfare. Although cooperation among the unions reduces wages, it may either increase or decrease the firm's incentive for innovation, and may also make the consumers and the society worse off by reducing innovation. While cooperation (compared to noncooperation) among the unions makes the workers better off, it may not make all final-goods producers better off.
- Business and Economics
Published inJournal of Institutional and Theoretical Economics
Pages279 - 300
- AM (Accepted Manuscript)
Rights holder© Mohr Siebeck
Publisher statementThis paper was accepted for publication in the journal Journal of Institutional and Theoretical Economics and the definitive published version is available at https://doi.org/10.1628/093245616x14785139493983.