Labor Unionization Structure, Innovation, and Welfare

Tien-Der Han, Arijit Mukherjee*

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

4 Citations (Scopus)

Abstract

We show the effects of cooperation among the labor unions with complementary workers on innovation, consumer surplus, and welfare. Although cooperation among the unions reduces wages, it may either increase or decrease the firm's incentive for innovation, and may also make the consumers and the society worse off by reducing innovation. While cooperation (compared to noncooperation) among the unions makes the workers better off, it may not make all final-goods producers better off.
Original languageEnglish
Pages (from-to)279-300
JournalJournal of Institutional and Theoretical Economics
Volume173
Issue number2
Online published7 Dec 2016
DOIs
Publication statusPublished - Jun 2017
Externally publishedYes

Research Keywords

  • PERSPECTIVE
  • INCENTIVES
  • IMITATION
  • POLICY
  • WAGES

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