Koskela, Erkki; Stenbacka, Rune - 2021
We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base … bargaining power of the trade union and it has effort-enhancing and wage-moderating effects. We show that higher profit sharing … high benefit-replacement ratios and relative bargaining powers of trade unions. Conversely, profit sharing seems to be …