Trade Unions in an Open Economy: A General Equilibrium Analysis
AbstractThis paper derives a general equilibrium demand-for-labor schedule within the Heckscher-Ohlin-Samuelson model of a large open economy and then introduces an economywide labor union that maximizes its utility subject to this demand schedule, thereby determining the real wage and, hence, total employment. A parametric shift's comparative-static effects on the equilibrium levels of unemployment and welfare are analyzed within this fully unionized economy. Copyright 1989 by The Economic Society of Australia.
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Bibliographic InfoArticle provided by The Economic Society of Australia in its journal The Economic Record.
Volume (Year): 65 (1989)
Issue (Month): 190 (September)
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- Gaston, Noel & Trefler, Daniel, 1995. "Union wage sensitivity to trade and protection: Theory and evidence," Journal of International Economics, Elsevier, vol. 39(1-2), pages 1-25, August.
- Chi-Hsin Wu & Chia-Ying Liu, 2010. "Do Trade Unions Deteriorate International Competitiveness? Reconciliation of the Discrepancy Between Theory and Practice," Atlantic Economic Journal, International Atlantic Economic Society, vol. 38(2), pages 145-155, June.
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