In this paper we develop a Cournot duopoly model to assess how workplace unions affect process and product innovation. We consider an industrial relations system where firm- and industry-level organizations coexist. In the spirit of the literature on voice, we assume that local bodies decrease...

Liberalization of temporary contracts has been a hallmark of labor market reforms during the last decades. More recently, factors like the sovereign debt crisis pushed the most indebted countries to unprecedented reductions of employment protection legislation (EPL) also on open-ended contracts....