TY  - JOUR
AU  - Christofides,Louis N.
AU  - Oswald,Andrew J.
TI  - Efficient and Inefficient Employment Outcomes: A Study Based on Canadian Data
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3648
PY  - 1991
Y2  - March 1991
UR  - http://www.nber.org/papers/w3648
L1  - http://www.nber.org/papers/w3648.pdf
N1  - Author contact info:
Andrew Oswald
Department of Economics
University of Warwick
Coventry CV4 7AL
England
Tel: 44-01203-5235
Fax: 44-01203-5230
E-Mail: a.j.oswald@warwick.ac.uk
AB  - This paper estimates employment equations based on the traditional labour demand model and modern efficient bargain theory using data drawn from wage contracts signed in the Canadian private unionized sector between 1978 and 1984. Contrary to the labour demand model predictions, the alternative wage rate is consistently significant and has the negative coefficient predicted by efficient bargain theory. Though a credible labour demand model can sometimes be estimated, the results are sensitive to the assumed market structure and to the introduction of alternative wage and unemployment insurance variables. Non-nested tests favour efficient bargain specifications.
ER  -