Taking technological differences between firms as given, we show that the technologically advanced firm has a stronger incentive for technology licensing under a decentralized unionization structure than with centralized wage setting. Furthermore, We show that, in presence of licensing, the incentive for innovation may also be stronger under decentralized unions. Unions have a clear preference for centralization only if productivity improvements are relatively small.

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hdl.handle.net/1765/7427
Tinbergen Institute Discussion Paper Series
Tinbergen Institute

Mukherjee, A., & Pennings, E. (2005). Unionization Structure, Licensing and Innovation (No. TI 05-109/4). Tinbergen Institute Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/7427