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Efficient and Inefficient Employment Outcomes: A Study Based on Canadian Data / Louis N. Christofides, Andrew J. Oswald.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Christofides, Louis N.
Contributor:
National Bureau of Economic Research.
Oswald, Andrew J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3648.
NBER working paper series no. w3648
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Efficient and Inefficient Employment Outcomes
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1991.
Summary:
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 unionized 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 efficient bargain specifications.
Notes:
Print version record
March 1991.

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