Christofides, L. and Oswald, A. (1991) Efficient and inefficient employment outcomes: a study based on Canadian contract data. CEP discussion paper, 41. Centre for Economic Performance, London School of Economics and Political Science, London, UK.Full text not available from this repository.
This paper estimates employment equations based on the traditional labour demand model and modern efficient bargain theory using data drawn from wage contracts signed in the Canadian private unionised sector between 1978 and 1984. Contrary to the labour demand model predictions, the alternative wage rate is consistently significant and has the negative coefficient predicted by efficient bargain theory. Though a credible labour demand model can sometimes be estimated, the results are sensitive to the assumed market structure and to the introduction of alternative wage and unemployment insurance variables. Non-nested tests favour bargain specifications.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1991 The Authors|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Actions (login required)
|Record administration - authorised staff only|