TY  - RPRT
        AU  - Berton, Fabio
AU  - Dughera, Stefano
AU  - Ricci, Andrea
        TI  - Unions and Firms' Investments: A Unified View
        PY  - 2019/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 12515
        UR  - https://www.iza.org/index.php/publications/dp12515
        AB  - In this paper, we present a simple model in which a unionized and non-unionized firm optimally make investment decisions given their labor productivity. By allowing workers' organizations to have positive effects on labor effort, we find that the classic hold-up problem does not necessarily survive. We also derive conditions under which rent-seeking by unions may actually encourage firms' investments.
        KW  - firms' investments
KW  - labor unions
KW  - rent seeking
KW  - workers' effort
KW  - hold-up
        ER  -