%0 Report
        %A Berton, Fabio
%A Dughera, Stefano
%A Ricci, Andrea
        %T Unions and Firms' Investments: A Unified View
        %D 2019
        %8 2019 Jul
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 12515
        %U https://www.iza.org/publications/dp12515
        %X 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.
        %K firms' investments
%K labor unions
%K rent seeking
%K workers' effort
%K hold-up