NDLI: Parente and Prescott's Theory May Work in Practice But Does Not Work in Theory

Content Provider	Semantic Scholar
Author	Cozzi, Guido Palacios, Luis-Felipe
Copyright Year	2003
Abstract	In this paper we challenge Parente and Prescott's (1999) theoretical framework, which establishes that unions use their control of "work practices" to thwart the efficient use of technology in the firms. We argue instead that unions, despite endowing monopoly rights over a technology, should tend to impose its efficient use. In fact if union members care about labor disutility, along with wage incomes, they will dictate "work practices" consistent with operating technology at full efficiency, in order to allow workers to enjoy more leisure. Our result is more general than Parente and Prescott's and does not rely on the particular specification of preferences.
File Format	PDF HTM / HTML
DOI	10.2202/1534-6005.1116
Volume Number	3
Alternate Webpage(s)	http://dro.dur.ac.uk/6498/2/6498.pdf?DDD2+dbr4wd+d67a9y
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

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