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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/2742

Title: The temporal dimension of wage contracts in oligopoly with spillovers
Authors: Zikos, Vasileios
Keywords: Wage contracts
Issue Date: 2007
Abstract: This paper examines how the duration of wage contracts influences innovation incentives, wages and employment. We find that wages are non-monotone in the duration of wage contracts. Furthermore, a positive and one-to-one relation between innovation and union utility exists and both attain their highest value under a long-term contract. Profits may vary depending on the extent of R&D spillovers and the associated raising rivals' cost incentive, although they are highest when union/firms engage in a long-term contractual relation. Testable predictions to discriminate between short-term and long-term contracts are also discussed.
Description: This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_04.html.
URI: https://dspace.lboro.ac.uk/2134/2742
ISSN: 1750-4171
Appears in Collections:Working Papers (Economics)

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