Abstract (EN):
We study the effects of cooperative wage setting in industries that use two different
types of labor. In particular, we consider a two-stage game where firms hire nonspecialized
workers in a perfectly competitive labor market and specialized workers that
are more productive and expensive, but whose wages can be cooperatively determined
by firms. It is shown that semi-collusion leads to lower wages and employment of
specialized labor, lower production levels and higher prices, due to the elimination of
the business stealing effect, labor force stealing effect and as a result of a dynamic effect
that is specific to semi-collusive games.
Idioma:
Inglês
Tipo (Avaliação Docente):
Científica
Notas:
http://wps.fep.up.pt/wps/wp522.pdf