Arbeitspapier
Economic Integration, Wage Policies and Social Policies
This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a differential induces a relocation effect which increases with the level of trade integration. The ?new economic geography? world assumes mobile entrepreneurs which can relocate thus bringing agglomeration forces into play. The most significant difference between this world and the traditional one is that, at high levels of trade integration, where one country has emerged as the core and the other as the periphery, the core may have more generous social policies and higher wages than the periphery without inducing a relocation of firms. The scope to have higher wage is constrained, however, and related to the level of trade integration in a bell-shaped way.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 354
- Klassifikation
-
Wirtschaft
Trade and Labor Market Interactions
International Migration
Economic Integration
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
International Investment; Long-term Capital Movements
Size and Spatial Distributions of Regional Economic Activity
- Thema
-
Integration
wages
industry location
agglomeration
monopolistic competition
Wirtschaftsintegration
Industriestandort
Standorttheorie
Lohnpolitik
Sozialpolitik
Standortwettbewerb
Neue ökonomische Geographie
Monopolistischer Wettbewerb
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Pflüger, Michael
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2003
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Pflüger, Michael
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2003
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