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AA00260492-19920002-0015.pdf
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Title |
Title |
TRADE UNION BARGAINING, PRIVATIZATION AND ADJUSTMENT MEASURES
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SEN, Anindya
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Indira Gandhi Institute of Development Research
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SAHA, Bibhas
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Indira Gandhi Institute of Development Research
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Keio Economic Society, Keio University
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1992
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Keio economic studies
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29
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2
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1992
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Start page |
15
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End page |
23
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Abstract |
This paper employs a generalized Nash bargaining solution to show that in the presence of strong trade union bargaining power, the privatization of a monopoly public sector enterprise increases social welfare. Two adjustment measures to reduce the adverse employment impact of privatization--wage cut policy and a severance pay policy--are next examined. The wage cut policy is superior to the severance pay policy. However, the two policies are never simultaneously available.
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