TY  - RPRT
        AU  - Koskela, Erkki
AU  - Stenbacka, Rune
        TI  - Profit Sharing, Credit Market Imperfections and Equilibrium Unemployment
        PY  - 2004/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1020
        UR  - https://www.iza.org/publications/dp1020
        AB  - We investigate the interaction between labour and credit market imperfections for equilibrium unemployment in the presence of profit sharing. In a partial equilibrium with exogenous outside options increased bargaining power of banks has adverse employment effects. In a general equilibrium with endogenous outside options this relationship is frequently reversed; reduced credit market imperfections increase equilibrium unemployment if the labour market imperfections – measured by the bargaining power of trade unions - are sufficiently strong and benefit-replacement ratio high enough. Finally, we show that higher bankruptcy risks increase equilibrium unemployment under similar conditions.
        KW  - equilibrium unemployment
KW  - compensation systems
KW  - wage and loan bargaining
KW  - outside options
        ER  -