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Trade and Wages When the Trade Regime Is Determined Endogenously

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  • Naylor, Robin

Abstract

The paper shows that whether trade is one-way or two-way depends on wage strategies adopted by trade unions. The union's wage strategy choices themselves depend upon the conditions under which trade takes place, as well as upon the characteristics of both the labor and the product markets in the trading countries. Thus, trade and labor market outcomes are determined endogenously. Testable hypotheses are generated, and the implications of the theoretical model for the econometric analysis of trade and wages are discussed. Copyright 2000 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 8 (2000)
Issue (Month): 3 (August)
Pages: 556-65

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Handle: RePEc:bla:reviec:v:8:y:2000:i:3:p:556-65

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Catia Montagna & Antonella Nocco, 2013. "Unionization, international integration, and selection," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 46(1), pages 23-45, February.
  2. Montagna, Catia & Nocco, Antonella, 2012. "Unionisation, International Integration and Selection," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2012-22, Scottish Institute for Research in Economics (SIRE).
  3. Montagna, Catia & Nocco, Antonella, 2011. "Unionisation, International Integration and Selection," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2011-49, Scottish Institute for Research in Economics (SIRE).
  4. Bhattarai, Keshab & Mallick, Sushanta, 2013. "Impact of China's currency valuation and labour cost on the US in a trade and exchange rate model," The North American Journal of Economics and Finance, Elsevier, Elsevier, vol. 25(C), pages 40-59.
  5. Andersen, Torben M. & Sørensen, Allan, 2007. "Product Market Integration and Labour Markets: Aggregate Gains at the Cost of More Inequality?," IZA Discussion Papers 2556, Institute for the Study of Labor (IZA).
  6. Andersen, Torben M & Sorensen, Allan, 2005. "Product Market Integration, Wages and Inequality," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4963, C.E.P.R. Discussion Papers.
  7. E. Bacchiega & A. Minniti, 2013. "Training and Product Quality in Unionized Oligopolies," Working Papers wp871, Dipartimento Scienze Economiche, Universita' di Bologna.

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