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Product market competition, external economies of scale and unionized wage

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  • Arijit Mukherjee

Abstract

Although empirical evidence shows that higher product market competition increases unionized wage, the theoretical literature did not pay much attention to this aspect. We show that the positive relation between product market competition and unionized wage may occur in the presence of external economies of scale. In this respect, the labor productivity and the effects of the external economies of scale may play important roles.

Suggested Citation

  • Arijit Mukherjee, 2011. "Product market competition, external economies of scale and unionized wage," Discussion Papers 11/14, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:11/14
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    File URL: https://www.nottingham.ac.uk/economics/documents/discussion-papers/11-14.pdf
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    References listed on IDEAS

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    1. Paulo Bastos & Udo Kreickemeier & Peter W. Wright, 2010. "Open‐shop unions and product market competition," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(2), pages 640-662, May.
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