Wage Bargaining Under the National Labor Relations Act

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2006
Volume: 15
Issue: 4
Pages: 1017-1039

Authors (2)

Jesse A. Schwartz (not in RePEc) Quan Wen (University of Washington)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Sections 8(a)(3) and 8(a)(5) of the National Labor Relations Act (NLRA) prohibit the management of a firm from unilaterally increasing the wage during contract negotiations without the union's approval. We show how the management can strategically increase the wage during negotiations without violating the NLRA. Increasing the wage during negotiations will upset the union's incentive to strike and decrease the union's bargaining power, thereby shrinking the set of equilibrium contracts in the firm's favor. Indeed, as the union becomes more patient, the set of equilibrium wages converges to the best equilibrium outcome to the firm.

Technical Details

RePEc Handle
repec:bla:jemstr:v:15:y:2006:i:4:p:1017-1039
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29