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Economic Integration and Union Power

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  • Bala Batavia

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  • Parameswar Nandakumar
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    Abstract

    The standard utility-maximizing model of the trade union in a closed economy is reformulated for an environment where economic integration is under way or expected to occur soon. In the (European) realistic setting of union-dominated labor markets, domestic wages are shown to be affected by labor market developments abroad. This article provides an explanation of the international transmission of inflation and disinflation Copyright Kluwer Academic Publishers 2002

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    File URL: http://hdl.handle.net/10.1023/A:1013925331572
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 13 (2002)
    Issue (Month): 2 (April)
    Pages: 175-182

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    Handle: RePEc:kap:openec:v:13:y:2002:i:2:p:175-182

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    Web page: http://www.springerlink.com/link.asp?id=100323

    Related research

    Keywords: trade union behavior; capital mobility; economic integration;

    References

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    1. Calmfore, L., 1993. "Centralization of Wage Bargaining and Macroeconomic Performance - A Survey," Papers 536, Stockholm - International Economic Studies.
    2. Kouri, Pentti J K & Porter, Michael G, 1974. "International Capital Flows and Portfolio Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 443-67, May/June.
    3. Pentti J.K. Kouri, 1978. "Profitability and Growth in a Small Open Economy," Cowles Foundation Discussion Papers 490, Cowles Foundation for Research in Economics, Yale University.
    4. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-29, June.
    5. Sampson, Anthony A, 1983. "Employment Policy in a Model with a Rational Trade Union," Economic Journal, Royal Economic Society, vol. 93(37), pages 297-311, June.
    6. Calmfors, Lars & Horn, Henrik, 1985. " Classical Unemployment, Accommodation Policies and Adjustment of Real Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 234-61.
    7. Oswald, Andrew J, 1982. "The Microeconomic Theory of the Trade Union," Economic Journal, Royal Economic Society, vol. 92(367), pages 576-95, September.
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