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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19694| Title: | Does intra-firm bargaining matter for business cycle dynamics? |
| Keywords: | E32 J64 E24 ddc:330 Strategic wage setting search and matching frictions business cycle propagation Konjunkturtheorie Lohnverhandlungen Allgemeines Gleichgewicht Arbeitsuche Matching Theorie |
| Issue Date: | 16-Oct-2013 |
| Description: | We analyse the implications of intra-firm bargaining for business cycle dynamics in models with large firms and search frictions. Intra-firm bargaining implies a feedback effect from the marginal revenue product to wage setting which leads firms to over-hire in order to reduce workers' bargaining position within the firm. The key to this effect are decreasing returns and/or downward-sloping demand. We show that equilibrium wages and employment are higher in steady state compared to a bargaining framework in which firms neglect this feedback. However, the effects of intra-firm bargaining on adjustment dynamics, volatility and comovement are negligible. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19694 |
| Other Identifiers: | http://hdl.handle.net/10419/19694 ppn:543472477 RePEc:zbw:bubdp1:6138 |
| Appears in Collections: | EconStor |
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