In a framework of a n-union/n-firm oligopoly, this paper analyzes the incentive for firms and unions to adopt efficient bargaining, i.e. negotiating over wages together with employment. The analysis is conducted for the case of autarchy and for an integrated product market. Firm profits, union...

Using a large linked employer-employee data set, this paper presents new evidence on the wage premium under collective bargaining contracts in western and eastern Germany. The novel feature of our analysis is that we use a longitudinal data set. In contrast to previous studies, we seek to assess...

This paper studies the relationship between wages and the degree of firm heterogeneity in a given industry under different wage setting structures. To derive testable hypotheses, we set up a theoretical model that analyses the sensitivity of wages to the variability in productivity conditions in...