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Incentives, Bargaining and the Wage Structure

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  • Brunello, Giorgio

Abstract

The literature on promotion tournaments is combined with the literature on bargaining to explain how local wage adjustments affect individual effort and the internal wage structure of the firm. It turns out that the effect of an increase in the bargaining power of the local union on individual effort and on the wage structure depends on whether the author considers local bargaining in isolation or he integrates it with employment determination and central wage setting. Copyright 1994 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Brunello, Giorgio, 1994. "Incentives, Bargaining and the Wage Structure," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(4), pages 481-497.
    • Handle: RePEc:bla:scandj:v:96:y:1994:i:4:p:481-97
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    Cited by:

    1. Brunello, Giorgio, 1998. "Does centralised bargaining reduce individual effort?," European Journal of Political Economy, Elsevier, vol. 14(2), pages 381-406, May.
    2. Kristoffer W. Eriksen & Ola Kvaløy & Trond E. Olsen, 2011. "Tournaments with Prize‐setting Agents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 729-753, September.
    3. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.

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