An interesting contemporary feature of large-sized enterprises in Eastern European transitional economies is the massive financing of investment through retained earnings. This paper uses a monopoly trade union model to investigate the consequences of this mechanism on a firm's employment and wage behavior in a two-period setting.
VRANCEANU, R. (1998). A Two Period Model of Wage Bargaining in Transitional Economies. In: The Global Economy at the Turn of the Century. pp. 293-310.