Citation

Discussion Paper Details

Please find the details for DP4095 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: On Footloose Industries, Asymmetric Information and Wage Bargaining

Author(s): Nancy H Chau and Ravi Kanbur

Publication Date: October 2003

Keyword(s): bargaining under asymmetric information, employment, foreign direct investment and union wage

Programme Area(s): International Trade and Regional Economics and Labour Economics

Abstract: If capital becomes internationally mobile but labor does not, is the bargaining outcome for workers worsened? In this paper we show that the answer to this question depends critically on the information structure of the bargaining process. In particular, we demonstrate a hitherto underappreciated informational role of capital mobility in determining the distribution of output between workers and employers. In doing so we bring together three strands of literature not often seen together--incentive compatible contracting, union-employer bargaining, and the consequences of capital mobility.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4095

Bibliographic Reference

Chau, N and Kanbur, R. 2003. 'On Footloose Industries, Asymmetric Information and Wage Bargaining'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4095