The Influence of Heterogenous Bargaining Strengths on Optimal Wage Negotitations
24 Pages Posted: 30 May 2010
Date Written: May 29, 2010
In this paper I show that - in contrast to the findings in the previous literature - substitutable workers can be better off negotiating in separate unions and complementary workers in one encompassing union. In addition, I find that results do not differ if two craft unions merge and negotiate as one bargaining agent or whether two separate craft unions negotiate with firms in one negotiation.
Keywords: Wage Negotiations, Heterogeneous Workers, Bargaining Strength
JEL Classification: D43, J50, L13
Suggested Citation: Suggested Citation