Union bargaining power, subcontracting and innovation
We show that if a firm can subcontract production to an informal sector, an increase in union power may either increase or decrease innovation. An increase in union power makes the firm worse off irrespective of its effect on innovation. However, in contrast to the usual belief, an increase in union...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
Elsevier
2017
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/40707/ |
| _version_ | 1848796121342672896 |
|---|---|
| author | Beladi, Hamid Mukherjee, Arijit |
| author_facet | Beladi, Hamid Mukherjee, Arijit |
| author_sort | Beladi, Hamid |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We show that if a firm can subcontract production to an informal sector, an increase in union power may either increase or decrease innovation. An increase in union power makes the firm worse off irrespective of its effect on innovation. However, in contrast to the usual belief, an increase in union power may increase consumer surplus and decrease union utility by affecting innovation, thus suggesting that a union may not want to be too powerful. An increase in union power may create an ambiguous effect on social welfare. Our analysis provides new insights to the relation between union power and innovation. |
| first_indexed | 2025-11-14T19:42:57Z |
| format | Article |
| id | nottingham-40707 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:42:57Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-407072020-05-04T18:33:59Z https://eprints.nottingham.ac.uk/40707/ Union bargaining power, subcontracting and innovation Beladi, Hamid Mukherjee, Arijit We show that if a firm can subcontract production to an informal sector, an increase in union power may either increase or decrease innovation. An increase in union power makes the firm worse off irrespective of its effect on innovation. However, in contrast to the usual belief, an increase in union power may increase consumer surplus and decrease union utility by affecting innovation, thus suggesting that a union may not want to be too powerful. An increase in union power may create an ambiguous effect on social welfare. Our analysis provides new insights to the relation between union power and innovation. Elsevier 2017-02-21 Article PeerReviewed Beladi, Hamid and Mukherjee, Arijit (2017) Union bargaining power, subcontracting and innovation. Journal of Economic Behavior and Organization, 137 . pp. 90-104. ISSN 0167-2681 Consumer surplus; Innovation; Union; Subcontracting http://www.sciencedirect.com/science/article/pii/S016726811730046X doi:10.1016/j.jebo.2017.02.013 doi:10.1016/j.jebo.2017.02.013 |
| spellingShingle | Consumer surplus; Innovation; Union; Subcontracting Beladi, Hamid Mukherjee, Arijit Union bargaining power, subcontracting and innovation |
| title | Union bargaining power, subcontracting and innovation |
| title_full | Union bargaining power, subcontracting and innovation |
| title_fullStr | Union bargaining power, subcontracting and innovation |
| title_full_unstemmed | Union bargaining power, subcontracting and innovation |
| title_short | Union bargaining power, subcontracting and innovation |
| title_sort | union bargaining power, subcontracting and innovation |
| topic | Consumer surplus; Innovation; Union; Subcontracting |
| url | https://eprints.nottingham.ac.uk/40707/ https://eprints.nottingham.ac.uk/40707/ https://eprints.nottingham.ac.uk/40707/ |