Centralized vs. Decentralized Wage Formation: The Role of Firms' Production Technology

Research, Preprint OPEN
Hirsch, Boris; Merkl, Christian; Müller, Steffen; Schnabel, Claus;
(2014)
  • Publisher: Nürnberg: Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
  • Subject: wage formation | J50 | bargaining | collective bargaining | J30 | J41 | collective bargaining, bargaining coverage, Germany | Germany | bargaining coverage | collective bargaining,bargaining coverage,Germany
    • jel: jel:J50
      ddc: ddc:330

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likel... View more
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