Union Wage Strategies and International Trade
AbstractThe author characterizes a full set of possible international trade regimes for different combinations of wages in a two-country model of oligopoly with a homogeneous product. He shows that the nature of any equilibrium trade will be either interindustry (one-way) or intraindustry (two-way) depending on (endogenous) union choices between high- and low-wage strategies. The author shows that intraindustry trade is the more likely the lower are trade costs and that, under intraindustry trade, falling trade costs lead monopoly unions to set higher wages, but the opposite obtains under interindustry trade.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 109 (1999)
Issue (Month): 452 (January)
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Other versions of this item:
- Naylor, Robin, 1997. "Union Wage Strategies and International Trade," The Warwick Economics Research Paper Series (TWERPS) 480, University of Warwick, Department of Economics.
- F15 - International Economics - - Trade - - - Economic Integration
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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