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Efficiency Wages and Local Wage Bargaining

Author

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  • Muysken, Joan
  • van Veen, Tom

Abstract

In the literature on wage drift, it is often argued that strikes or work-to-rule practices are used to force employers to pay a wage rate that exceeds the contract wage. Here, the authors introduce the efficiency wage argument as a foundation for bargaining about wage drift. Contrary to the view in most bargaining models, where firms and unions struggle to divide a fixed pie, given employment, they take the relation between wages and revenues explicitly into account. The implications for wages and employment appear to differ not only with respect to the order of magnitude but also in a qualitative sense. Copyright 1996 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Muysken, Joan & van Veen, Tom, 1996. "Efficiency Wages and Local Wage Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(1), pages 119-127, March.
    • Handle: RePEc:bla:scandj:v:98:y:1996:i:1:p:119-27
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    Citations

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    Cited by:

    1. Bastos, Paulo & Monteiro, Natália P. & Straume, Odd Rune, 2009. "Firm heterogeneity and wages in unionised labour markets: Theory and evidence," Labour Economics, Elsevier, vol. 16(4), pages 440-450, August.
    2. Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(3), pages 273-299, June.
    3. Pull, Kerstin, 1999. "What is the fair wage? A model of as-if-co-operation," Quint-Essenzen 58, University of Trier, Institute for Labour Law and Industrial Relations in the European Community (IAAEG).
    4. Buscher, Herbert S., 2003. "Gibt es eine Lohnkurve in den neuen Bundesländern? (Is there a wage curve in eastern German?)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 461-475.
    5. Sven Jung & Claus Schnabel, 2011. "Paying More than Necessary? The Wage Cushion in Germany," LABOUR, CEIS, vol. 25(2), pages 182-197, June.
    6. Frank A. G. Den Butter & Florian Eppink, 2003. "The influence of labour flows on wage drift: an empirical analysis for The Netherlands," Applied Economics Letters, Taylor & Francis Journals, vol. 10(3), pages 139-142.
    7. Pull, Kerstin, 1996. "Übertarifliche Entlohnung : ein Ergebnis vorweggenommener Verhandlungen (Wages above the collectively agreed level: a result of anticipated negotiations)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(4), pages 607-615.
    8. Buscher, Herbert S., 2003. "Gibt es eine Lohnkurve in den neuen Bundesländern? (Is there a wage curve in eastern German?)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 461-475.
    9. Antonio Garofalo & Concetto Paolo Vinci, 2001. "Employment Oriented Policies In A Trade Union Local Wage Bargaining Model," Working Papers 7_2001, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    10. Tobias Kronenberg, 2008. "How does reciprocal behaviour of workers influence the wage setting of unions?," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(4), pages 303-320, December.
    11. Pull, Kerstin, 1996. "Übertarifliche Entlohnung : ein Ergebnis vorweggenommener Verhandlungen (Wages above the collectively agreed level: a result of anticipated negotiations)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(4), pages 607-615.
    12. 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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