Advanced Search
MyIDEAS: Login to save this article or follow this journal

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

Contents:

Author Info

  • Braun, Sebastian
  • Spielmann, Christian

Abstract

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. --

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2012-30
Download Restriction: no

File URL: http://econstor.eu/bitstream/10419/60982/1/720812801.pdf
Download Restriction: no

Bibliographic Info

Article provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.

Volume (Year): 6 (2012)
Issue (Month): 30 ()
Pages: 1-42

as in new window
Handle: RePEc:zbw:ifweej:201230

Contact details of provider:
Postal: Kiellinie 66, D-24105 Kiel
Phone: +49 431 8814-1
Fax: +49 431 8814528
Email:
Web page: http://www.economics-ejournal.org/
More information through EDIRC

Related research

Keywords: wage subsidies; policy spill-overs; international policy coordination; unionized labour markets; trade; asymmetric labour market institutions;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
  2. Alan B. Krueger & Andreas Mueller, 2008. "Job Search and Unemployment Insurance: New Evidence from Time Use Data," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 1070, Princeton University, Department of Economics, Industrial Relations Section..
  3. Andreas Haufler & Michael Pflüger, 2007. "International Oligopoly and the Taxation of Commerce with Revenue-Constrained Governments," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 74(295), pages 451-473, 08.
  4. Peter Fredriksson & Bertil Holmlund, 2006. "Optimal unemployment insurance design: Time limits, monitoring, or workfare?," International Tax and Public Finance, Springer, Springer, vol. 13(5), pages 565-585, September.
  5. Oleg Itskhoki & Elhanan Helpman, 2008. "Labor Market Rigidities, Trade and Unemployment," 2008 Meeting Papers 690, Society for Economic Dynamics.
  6. Martin Heidenreich & Gabriele Bischoff, 2008. "The Open Method of Co-ordination: A Way to the Europeanization of Social and Employment Policies?," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 46, pages 497-532, 06.
  7. Orszag, J. Michael & Snower, Dennis J., 2003. "Designing employment subsidies," Labour Economics, Elsevier, Elsevier, vol. 10(5), pages 557-572, October.
  8. James A. Brander & Barbara J. Spencer, 1983. "Trade Warfare: Tariffs and Cartels," NBER Working Papers 1193, National Bureau of Economic Research, Inc.
  9. Davis, Donald R, 1998. "Does European Unemployment Prop Up American Wages? National Labor Markets and Global Trade," American Economic Review, American Economic Association, American Economic Association, vol. 88(3), pages 478-94, June.
  10. Naylor, Robin, 1998. "International trade and economic integration when labour markets are generally unionised," European Economic Review, Elsevier, Elsevier, vol. 42(7), pages 1251-1267, July.
  11. Felbermayr, Gabriel & Larch, Mario & Lechthaler, Wolfgang, 2012. "Endogenous labor market institutions in an open economy," Munich Reprints in Economics, University of Munich, Department of Economics 20600, University of Munich, Department of Economics.
  12. Andreas HaufLer & Guttorm Schjelderup & Frank Stähler, 2005. "Barriers to Trade and Imperfect Competition: The Choice of Commodity Tax Base," International Tax and Public Finance, Springer, Springer, vol. 12(3), pages 281-300, May.
  13. J Peter Neary, 2002. "Globalisation and Market Structure," Working Papers, School Of Economics, University College Dublin 200220, School Of Economics, University College Dublin.
  14. Braun, Sebastian & Spielmann, Christian, 2012. "Wage subsidies and international trade: When does policy coordination pay?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(30), pages 1-42.
  15. James Brander, 1980. "Intra-Industry Trade in Identical Commodities," Working Papers, Queen's University, Department of Economics 380, Queen's University, Department of Economics.
  16. Wolfgang Lechthaler & Mario Larch & Gabriel Felbermayr, 2009. "Unemployment in an Interdependent World," 2009 Meeting Papers, Society for Economic Dynamics 596, Society for Economic Dynamics.
  17. Moriconi, Simone & Sato, Yasuhiro, 2009. "International commodity taxation in the presence of unemployment," Journal of Public Economics, Elsevier, Elsevier, vol. 93(7-8), pages 939-949, August.
  18. Hervé Boulhol, 2008. "Unemployment and interactions between trade and labour market institutions," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00261478, HAL.
  19. Olaf van Vliet & Ferry Koster, 2011. "Europeanization and the Political Economy of Active Labour Market Policies," European Union Politics, , vol. 12(2), pages 217-239, June.
  20. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198293323, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Braun, Sebastian & Spielmann, Christian, 2012. "Wage subsidies and international trade: When does policy coordination pay?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(30), pages 1-42.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:201230. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.