Unions, two-tier bargaining and physical capital investment: theory and firm-level evidence from Italy
"In this paper we present a search and matching model in which firms invest in sunk capital equipment. By comparing two wage setting scenarios, we show that a two-tier bargaining scheme, where a fraction of the salary is negotiated at firm level, raises the amount of investment per worker in th...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Bonn
2018
IZA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19306986124911241689-unions,-two-tier-bargaining-an.htm |
| _version_ | 1771659895029891073 |
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| author | Cardullo, Gabriele Conti, Maurizio Sulis, Giovanni |
| author_facet | Cardullo, Gabriele Conti, Maurizio Sulis, Giovanni |
| collection | Library items |
| description | "In this paper we present a search and matching model in which firms invest in sunk capital equipment. By comparing two wage setting scenarios, we show that a two-tier bargaining scheme, where a fraction of the salary is negotiated at firm level, raises the amount of investment per worker in the economy compared to a one-tier bargaining scheme, in which earnings are entirely negotiated at sectoral level. The model's main result is consistent with the positive correlation between investment per worker and the presence of a two-tier bargaining agreement that we find in a representative sample of Italian firms." |
| format | TEXT |
| geographic | Italy |
| id | 19306986124911241689_a4401744ad014fbaa26e43f58503448f |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19306986124911241689_a4401744ad014fbaa26e43f58503448f |
| is_hierarchy_title | Unions, two-tier bargaining and physical capital investment: theory and firm-level evidence from Italy |
| language | English |
| physical | 34 p. Digital |
| publishDate | 2018 |
| publisher | Bonn IZA |
| spellingShingle | Cardullo, Gabriele Conti, Maurizio Sulis, Giovanni collective bargaining collective agreement decentralization trade union role capital investment Unions, two-tier bargaining and physical capital investment: theory and firm-level evidence from Italy |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=137273595545 |
| title | Unions, two-tier bargaining and physical capital investment: theory and firm-level evidence from Italy |
| topic | collective bargaining collective agreement decentralization trade union role capital investment |
| url | https://www.labourline.org/KENTIKA-19306986124911241689-unions,-two-tier-bargaining-an.htm |