Union wage setting and international trade

Arbeitspapier

This paper sets up a general oligopolistic equilibrium model with two countries that differ in the centralization of union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases welfare and employment in both locations, and it raises income of capital owners as well as workers. In the long run, capital out ows from the country with the more centralized wage setting generate winners and losers and make the two countries more dissimilar in terms of unemployment of welfare. Decentralization of wage setting can successfully prevent capital out ow and the export of jobs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAAEU Discussion Paper Series in Economics ; No. 09/2012

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade and Labor Market Interactions ; Trade Unions: Objectives, Structure, and Effects ; Oligopoly and Other Imperfect Markets
• Subject: General oligopolistic equilibrium ; Union wage setting ; Asymmetric labor market institutions ; Trade liberalization ; Capital mobility ; Decentralization in union wage setting ; Lohnbildung ; Lohnpolitik ; Tariflohn ; Tarifpolitik ; Handelsliberalisierung ; Kapitalmobilität ; Oligopol ; Mehr-Länder-Modell ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egger, Hartmut ; Etzel, Daniel
• Event: Veröffentlichung
• (who): University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
• (where): Trier
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/80866
• Last update: 10.03.2025, 11:45 AM CET