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On the interaction between efficiency wages and union firm bargaining models

By Peter Sanfey


Even when efficiency wage considerations are taken into account, firms may have no incentive to pay wages above the competitive minimum. The total value of output therefore may be increased if workers in the efficiency wage sector also possess bargaining power. Efficiency wage and insider-outsider models may also reinforce each other

Topics: H
Publisher: Elsevier Science
Year: 1993
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