@TechReport{iza:izadps:dp12008,
            	author={Cardullo, Gabriele and Conti, Maurizio and Sulis, Giovanni},
            	title={Unions, Two-Tier Bargaining and Physical Capital Investment: Theory and Firm-Level Evidence from Italy},
            	year={2018},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12008},
            	url={https://www.iza.org/publications/dp12008},
	abstract={In this paper we present a search and matching model in which firms invest in sunk capital equipment. By comparing two wage setting scenarios, we show that a two-tier bargaining scheme, where a fraction of the salary is negotiated at firm level, raises the amount of investment per worker in the economy compared to a one-tier bargaining scheme, in which earnings are entirely negotiated at sectoral level. The model's main result is consistent with the positive correlation between investment per worker and the presence of a two-tier bargaining agreement that we find in a representative sample of Italian firms.},
	keywords={hold-up;two-tier bargaining;control function;investment;unions},
            }