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Subsidies on Labour and Capital under Wage Bargaining (1996)

Osstbye, Stein

Oxford, UK : Blackwell Publishing Ltd

Labour 10 (1996), S. 0

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ISSN: 1467-9914

Source: Blackwell Publishing Journal Backfiles 1879-2005

Topics: Economics

Notes: : Micro-policy instruments are often grouped into labour subsidies and capital subsidies. The purpose of this paper is to investigate the effect on employment of labour and capital subsidies when the wage rate is endogeneous. The problem is studied within a sequential three-stage model, integrating the investment decision, wage-bargaining and the employment decision. The paper demonstrates that labour subsidies may fail, depending on technology and the risk aversion of the workers.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1111/j.1467-9914.1996.tb00092.x

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