Collective Bargaining and Wage Formation: Performance and by Hannu Piekkola, Kenneth Snellman

By Hannu Piekkola, Kenneth Snellman

This quantity considers the improvement of the salary formation and salary bargaining associations as a reaction to alterations within the bargaining surroundings. those adjustments comprise a decrease point of inflation and the expansion in intraindustrial exchange as organizations became extra specialized. The reaction to those alterations relies on the present associations and at the features of the bargaining approach. usually there was a few circulation in the direction of decentralisation; the query is what will be bargained centrally and which concerns can be transferred to reduce degrees. a few of the contributions pay precise awareness to Nordic regimes utilizing survey effects collected from the Finnish labour marketplace partners.

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This is usually interpreted to follow from firm-specific assets, like knowledge capital, that can be flexibly used within the firm in its different units. The multinationals can also enjoy economies of scale and scope. However, higher productivity is more related to multinationality rather than foreign ownership, since domestically owned multinational firms also tend to have higher productivity than purely domestic firms. This productivity impact is additional to the higher productivity in exporting firms that Andersen points out.

2 Wage Spill-Over and Wage Norms An important issue is how wage formation across countries becomes more interdependent due to tighter product market integration. Obviously, wage formation in the home country depends on wage formation in the foreign country, since the latter is of importance for the competitive margin, cf. above. This is also seen by writing the wage function (15) as the following implicit function Wj =H(W;,Q,Q'), (16) where the H-function is homogeneous of degree one in W* , Q and Q*, and where >0 (17) 26 Torben M.

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