Publication

Ambiguous labor market reforms

2020
Working Papers

Abstract

When labour unions use first-best price discrimination, they can extract a wage above the marginal product of labour: employment is above the firm's own optimum - this is featherbedding or overmanning, and such rigidities can increase employment. While labour market reforms are usually beneficial in the long run, they can be detrimental in the short run if investment does not pick up quickly enough.

Official source

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2020
Working Papers

Abstract

Official source

Related concepts (20)

Labour law

Labour laws (also known as labor laws or employment laws) are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union. Individual labour law concerns employees' rights at work also through the contract for work. are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors are allowed to work.

Employment

Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties.

Employment contract

An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. Employment contracts relies on the concept of authority, in which the employee agrees to accept the authority of the employer and in exchange, the employer agrees to pay the employee a stated wage (Simon, 1951).