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Competition, External Economies of Scale, and Unionized Wage

Author

Listed:
  • Debasmita Basak

    (Nottingham University Business School, Jubilee Campus, Wollaton Road)

  • Arijit Mukherjee

    (Nottingham University Business School, Jubilee Campus, Wollaton Road
    CESifo
    INFER
    GRU, City University of Hong Kong)

Abstract

We provide a rationale for the mixed relationship between product market competition and unionized wage, and more importantly, for a generally unexplained empirical evidence of a positive relationship between product market competition and unionized wage. We show that a higher product market competition decreases (increases) unionized wage if the external scale economies are weak (strong). However, a higher product market competition may decrease or increase the unionized wage if the external scale economies are moderate.

Suggested Citation

  • Debasmita Basak & Arijit Mukherjee, 2021. "Competition, External Economies of Scale, and Unionized Wage," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 585-592, December.
    • Handle: RePEc:kap:jincot:v:21:y:2021:i:4:d:10.1007_s10842-021-00369-1
    DOI: 10.1007/s10842-021-00369-1
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Competition; External economics of scale; Pricing;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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