WAGE BARGAINING AND PARTIAL OWNERSHIP

This paper analyzes wage negotiation between firms and unions when cross-participation exists at ownership level. We consider two shareholders and two firms: one firm is jointly owned by the two shareholders and the other is owned by a single shareholder. Labor is unionized and the firms produce sub...

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Autores principales:	Bárcena-Ruiz,Juan Carlos, Campo,María Luz
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2010
Materias:	Partial Ownership Wage Bargaining Heterogeneous Goods
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862010000100002
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spelling	oai:scielo:S0718-528620100001000022010-07-14WAGE BARGAINING AND PARTIAL OWNERSHIPBárcena-Ruiz,Juan CarlosCampo,María Luz Partial Ownership Wage Bargaining Heterogeneous Goods This paper analyzes wage negotiation between firms and unions when cross-participation exists at ownership level. We consider two shareholders and two firms: one firm is jointly owned by the two shareholders and the other is owned by a single shareholder. Labor is unionized and the firms produce substitute products. We show that partial ownership increases the bargaining strength of the firm owned by a single shareholder; although this firm pays lower wages produces less output than the other firm. Compared with the case in which each firm is owned by a single shareholder, partial ownership reduces the wage paid by firms, the output of industry and therefore employment. Whether firms obtain greater or lower profit depends on the degree to which goods are substitutes. In fact, we obtain the surprising result that when the degree to which goods are substitutes is low enough, the firm that is owned by a single shareholder makes more profit than the other firm.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.37 n.1 20102010-06-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862010000100002en10.4067/S0718-52862010000100002
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Partial Ownership Wage Bargaining Heterogeneous Goods
spellingShingle	Partial Ownership Wage Bargaining Heterogeneous Goods Bárcena-Ruiz,Juan Carlos Campo,María Luz WAGE BARGAINING AND PARTIAL OWNERSHIP
description	This paper analyzes wage negotiation between firms and unions when cross-participation exists at ownership level. We consider two shareholders and two firms: one firm is jointly owned by the two shareholders and the other is owned by a single shareholder. Labor is unionized and the firms produce substitute products. We show that partial ownership increases the bargaining strength of the firm owned by a single shareholder; although this firm pays lower wages produces less output than the other firm. Compared with the case in which each firm is owned by a single shareholder, partial ownership reduces the wage paid by firms, the output of industry and therefore employment. Whether firms obtain greater or lower profit depends on the degree to which goods are substitutes. In fact, we obtain the surprising result that when the degree to which goods are substitutes is low enough, the firm that is owned by a single shareholder makes more profit than the other firm.
author	Bárcena-Ruiz,Juan Carlos Campo,María Luz
author_facet	Bárcena-Ruiz,Juan Carlos Campo,María Luz
author_sort	Bárcena-Ruiz,Juan Carlos
title	WAGE BARGAINING AND PARTIAL OWNERSHIP
title_short	WAGE BARGAINING AND PARTIAL OWNERSHIP
title_full	WAGE BARGAINING AND PARTIAL OWNERSHIP
title_fullStr	WAGE BARGAINING AND PARTIAL OWNERSHIP
title_full_unstemmed	WAGE BARGAINING AND PARTIAL OWNERSHIP
title_sort	wage bargaining and partial ownership
publisher	Universidad de Chile. Departamento de Economía
publishDate	2010
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862010000100002
work_keys_str_mv	AT barcenaruizjuancarlos wagebargainingandpartialownership AT campomarialuz wagebargainingandpartialownership
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WAGE BARGAINING AND PARTIAL OWNERSHIP

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