Manipulating the constraints: hard debt, efficiency wages, and union rents
Several papers have argued that firms can hide profits from unions with hard debt commitments. Alternatively, here we argue that unions can manipulate the non-shirking constraint and win higher efficiency wages. By creating a culture of mistrust and an opposition to supervision ex ante, unions can e...
| Main Author: | |
|---|---|
| Format: | Working paper |
| Published: |
University of Oxford
2003
|