@TechReport{iza:izadps:dp9691, author={Dobbelaere, Sabien and Luttens, Roland Iwan}, title={Gradual Collective Wage Bargaining}, year={2016}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={9691}, url={https://www.iza.org/index.php/publications/dp9691}, abstract={This paper presents an alternative implementation of firm-level collective wage bargaining, where bargaining proceeds as a finite sequence of sessions between a firm and a union of variable size. We investigate the impact of such a 'gradual' union on the wage-employment contract in an economy with concave production. In a static framework, the resulting equilibrium is equivalent to the efficient bargaining outcome. In a dynamic framework with search frictions, we demonstrate that gradual collective wage bargaining coincides with all-or-nothing bargaining when bargaining takes place in fictitious time before production.}, keywords={firm;gradual union;collective bargaining;search frictions;employment-at-will}, }