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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19067| Title: | Product market competition, profit sharing and equilibrium unemployment |
| Keywords: | L11 J51 J33 ddc:330 product market competition profit sharing wage bargaining equilibrium unemployment Tarifliche Gewinnbeteiligung Lohnverhandlungstheorie Wettbewerb Theorie der Arbeitslosigkeit Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | We investigate the implications of product market imperfections on profit sharing, wage negotiation and equilibrium unemployment. The optimal profit share, which the firms use as a wage-moderating commitment device, is below the bargaining power of the trade union. Intensified product market competition decreases profit sharing, but increases the negotiated base wage, because the wage-increasing effect of reduced profit sharing dominates the wage-reducing effect associated with a higher wage elasticity of labor demand. Finally, we show that intensified product market competition does not necessarily reduce equilibrium unemployment, because it induces both higher wage mark-ups and lower optimal profit shares. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19067 |
| Other Identifiers: | http://hdl.handle.net/10419/19067 ppn:509687830 |
| Appears in Collections: | EconStor |
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