Labor unionization structure, innovation and welfare

Tien-Der, Han; Mukherjee, Arijit

Abstract

We show the effects of cooperation among the labour unions with complementary workers on innovation, consumer surplus and welfare. Although cooperation among the unions reduces wage, it may either increase or decrease the firm’s incentive for innovation, and may also make the consumers and the society worse off by reducing innovation. While cooperation (compared to non-cooperation) among the unions makes the workers better off, it may not make all final goods producers better off.

Citation

Tien-Der, H., & Mukherjee, A. (2017). Labor unionization structure, innovation and welfare. Journal of Institutional and Theoretical Economics, 173(2), https://doi.org/10.1628/093245616X14785139493983

• Journal Article Type: Article
• Acceptance Date: Apr 28, 2016
• Online Publication Date: Dec 7, 2016
• Publication Date: Jun 1, 2017
• Deposit Date: Feb 9, 2017
• Publicly Available Date: Feb 9, 2017
• Journal: Journal of Institutional and Theoretical Economics
• Print ISSN: 0932-4569
• Electronic ISSN: 1614-0559
• Publisher: Mohr Siebeck
• Peer Reviewed: Peer Reviewed
• Volume: 173
• Issue: 2
• DOI: https://doi.org/10.1628/093245616X14785139493983
• Public URL: http://eprints.nottingham.ac.uk/id/eprint/40457
• Publisher URL: http://www.ingentaconnect.com/content/mohr/jite/2017/00000173/00000002/art00004
• Copyright Statement: Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf