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Free University of Bozen-Bolzano

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LocationRoom BZ E3.22, Universitätsplatz 1 - Piazza Università, 1, 39100 Bozen-Bolzano

Departments Press and Events

Contact Sabine Zanin
Sabine.Zanin@unibz.it

02 Dec 2021 12:30-13:30

research seminar: “Labor Associations: The Blue Wall of Silence”

Prof. Andrea Mattozzi, EUI Fiesole

LocationRoom BZ E3.22, Universitätsplatz 1 - Piazza Università, 1, 39100 Bozen-Bolzano

Departments Press and Events

Contact Sabine Zanin
Sabine.Zanin@unibz.it

for internal unibz participant physically present in the room register here
for external participants click here to connect via teams

abstract: We develop a model showing that when labor demand is inelastic and individual behavior is easily monitored a firm’s employees may prefer to protect its shirkers. By optimally reducing overall effort and increasing wages for all, a labor association rationally uses its monopoly power as described in the left wing labor slogan “work less so that all may work.” In addition, employees have a strong incentive to conceal information about peers’ performance from firms, what has been infamously known as the blue wall of silence in the case of the police. We argue that a number of recently proposed remedies to this problem are unlikely to succeed and suggest a more promising alternative: increase competition.

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