English, Article edition: Purpose – The purpose of this paper is to analyse the labor market outcome when there are two unions in the industry, representing heterogeneous workers – substitutes or complements in production – and using wage strategies, in the presence of minimum wage regulation. Design/methodology/approach – Three strategic environments are considered: symmetric Bertrand-Nash duopoly, Stackelberg duopoly, and efficient cooperation between the two unions. Findings – Usually, minimum wage legislation (floor) would decrease employment; it is shown that in Stackelberg environment, minimum wage legislation may induce an increase in total employment. Wage-pushing strategies by a leader may also arise; and if workers are substitutes, entry deterrence strategies by the leader may be observed. Originality/value – This paper analyses the impact of minimum wages in duopoly scenarios in an extensive way. Ana Paula Martins

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Bookmark: http://trove.nla.gov.au/version/29519
Physical Description
  • article
Language
  • English

Edition details

Title
  • Purpose – The purpose of this paper is to analyse the labor market outcome when there are two unions in the industry, representing heterogeneous workers – substitutes or complements in production – and using wage strategies, in the presence of minimum wage regulation. Design/​methodology/​approach – Three strategic environments are considered: symmetric Bertrand-Nash duopoly, Stackelberg duopoly, and efficient cooperation between the two unions. Findings – Usually, minimum wage legislation (floor) would decrease employment; it is shown that in Stackelberg environment, minimum wage legislation may induce an increase in total employment. Wage-pushing strategies by a leader may also arise; and if workers are substitutes, entry deterrence strategies by the leader may be observed. Originality/​value – This paper analyses the impact of minimum wages in duopoly scenarios in an extensive way.
Author
  • Ana Paula Martins
Physical Description
  • article
Notes
  • Industrial relations, Labour market, Pay bargaining, Pay policies, Trade unions
  • RePEc:eme:ijsepp:v:36:y:2009:i:5:p:580-607
Language
  • English
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