Competition, External Economies of Scale, and Unionized Wage

Basak, Debasmita; Mukherjee, Arijit

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.

Citation

Basak, D., & Mukherjee, A. (2021). Competition, External Economies of Scale, and Unionized Wage. Journal of Industry, Competition and Trade, 21(4), 585-592. https://doi.org/10.1007/s10842-021-00369-1

• Journal Article Type: Article
• Acceptance Date: Jul 11, 2021
• Online Publication Date: Jul 31, 2021
• Publication Date: 2021-12
• Deposit Date: Jul 12, 2021
• Publicly Available Date: Aug 1, 2022
• Journal: Journal of Industry, Competition and Trade
• Print ISSN: 1566-1679
• Electronic ISSN: 1573-7012
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• Volume: 21
• Issue: 4
• Pages: 585-592
• DOI: https://doi.org/10.1007/s10842-021-00369-1
• Keywords: Competition; External economics of scale; Pricing
• Public URL: https://nottingham-repository.worktribe.com/output/5781628
• Publisher URL: https://link.springer.com/article/10.1007/s10842-021-00369-1