Two-stage bargaining with coverage extension in a dual labour market
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Two-stage bargaining with coverage extension in a dual labour market. / Roberts, Mark A.; Stæhr, Karsten; Tranæs, Torben.
I: European Economic Review, Bind 44, Nr. 1, 2000, s. 181-200.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Two-stage bargaining with coverage extension in a dual labour market
AU - Roberts, Mark A.
AU - Stæhr, Karsten
AU - Tranæs, Torben
N1 - JEL Classification: J42, J31, J50
PY - 2000
Y1 - 2000
N2 - This paper studies coverage extension in a simple general equilibrium model with a dual labour market. The union sector is characterized by two-stage bargaining whereas the firms set wages in the non-union sector. In this model firms and unions of the union sector have a commonality of interest in extending coverage of a minimum wage to the non-union sector. Furthermore, the union sector does not seek to increase the non-union wage to a level above the market-clearing wage. In fact, it is optimal for the union sector to impose a market-clearing wage on the non-union sector. Finally, coverage extension increases welfare in this model
AB - This paper studies coverage extension in a simple general equilibrium model with a dual labour market. The union sector is characterized by two-stage bargaining whereas the firms set wages in the non-union sector. In this model firms and unions of the union sector have a commonality of interest in extending coverage of a minimum wage to the non-union sector. Furthermore, the union sector does not seek to increase the non-union wage to a level above the market-clearing wage. In fact, it is optimal for the union sector to impose a market-clearing wage on the non-union sector. Finally, coverage extension increases welfare in this model
U2 - 10.1016/S0014-2921(98)00056-7
DO - 10.1016/S0014-2921(98)00056-7
M3 - Journal article
VL - 44
SP - 181
EP - 200
JO - European Economic Review
JF - European Economic Review
SN - 0014-2921
IS - 1
ER -
ID: 149231