@article{e00386627730470bbcb06f1c648b6690,
title = "Productivity shocks in a union-duopoly model",
abstract = "We study the impacts of idiosyncratic productivity shocks when: firms have asymmetric productivities; firms and unions bargain over wages; and firms decide employment. The efficient firm pays a higher wage but has lower marginal production costs (due to its productivity advantage). Profits and worker surplus are higher at the efficient firm. A positive productivity shock affecting the efficient firm is always welfare improving; while if affecting the inefficient firm it may be welfare detrimental (if consumers' gain does not compensate the loss in worker surplus and industry profit). Consumer surplus increases more when the productivity shock affects the inefficient firm.",
author = "Ant{\'o}nio Brand{\~a}o and Joana Pinho",
note = "Funding Information: † The authors thank Jo{\~a}o Correia-da-Silva, Vera Rocha and two anonymous referees for their val-uable comments. The authors are also grateful to the participants of the 15th SAET Confer-ence on Current Trends in Economics. This research has been co-financed by the European Regional Development Fund (ERDF) through the COMPETE 2020 – Operational Pro-gramme Competitiveness and Internationalization (POCI) and national funds by the FCT under the POCI-01-0145-FEDER-006890 project; and the European Regional Development Fund (ERDF) through the COMPETE – Operational Programme Competitiveness Factors and national funds by the FCT under the FCOMP-01-0124-FEDER-029237 project. Joana Pinho is also grateful to FCT for her post-doctoral scholarship (SFRH/BPD/79535/2011). Funding Information: The authors thank Jo{\~a}o Correia‐da‐Silva, Vera Rocha and two anonymous referees for their valuable comments. The authors are also grateful to the participants of the 15th SAET Conference on Current Trends in Economics. This research has been co‐financed by the European Regional Development Fund (ERDF) through the COMPETE 2020 – Operational Programme Competitiveness and Internationalization (POCI) and national funds by the FCT under the POCI‐01‐0145‐FEDER‐006890 project; and the European Regional Development Fund (ERDF) through the COMPETE – Operational Programme Competitiveness Factors and national funds by the FCT under the FCOMP‐01‐0124‐FEDER‐029237 project. Joana Pinho is also grateful to FCT for her post‐doctoral scholarship (SFRH/BPD/79535/2011). Publisher Copyright: {\textcopyright} 2018 The University of Manchester and John Wiley & Sons Ltd",
year = "2018",
month = dec,
doi = "10.1111/manc.12222",
language = "English",
volume = "86",
pages = "722--756",
journal = "Manchester School",
issn = "1463-6786",
publisher = "Wiley-Blackwell Publishing Ltd",
number = "6",
}
