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.