Wage subsidies and international trade: When does policy coordination pay?

Artikel

National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggest that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an international duopoly model with unionized labour markets. The authors document both positive and negative spill-over effects and discuss the benefits and costs from international policy coordination both for the case of symmetric and asymmetric labour market institutions. The results suggest that institutional differences could sign responsible for the slow speed at which labour market policy coordination has progressed so far.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 6 ; Year: 2012 ; Issue: 2012-30 ; Pages: 1-42 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; International Policy Coordination and Transmission ; Wages, Compensation, and Labor Costs: Public Policy ; International Fiscal Issues; International Public Goods
• Subject: wage subsidies ; policy spill-overs ; international policy coordination ; unionized labour markets ; trade ; asymmetric labour market institutions ; Lohnsubvention ; Außenwirtschaft ; Spillover-Effekt ; Duopol ; International ; Gewerkschaftsmitgliedschaft ; Arbeitsmarktpolitik ; Internationale wirtschaftspolitische Koordination ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braun, Sebastian ; Spielmann, Christian
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2012

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2012-30
• Handle: http://hdl.handle.net/10419/60982
• Last update: 10.03.2025, 11:41 AM CET