Does product market integration lead to decentralised wage bargaining institutions?
AbstractThis paper studies the effects of product market integration on wage-bargaining institutions. It first shows evidence of a negative correlation between the level of wage bargaining and proxy measures of integration, such as the degree of openness and import penetration, for a macro-panel of 17 OECD countries over the 1975-2000 period. It then develops a theoretical model of an import-competing unionised Cournot-Nash oligopoly. The model shows that a reduction in trade barriers, by lowering the sharable surplus between home firms and labour when the final goods are substitutes, gives unions incentives to choose more decentralised wage-bargaining institutions. This industry-level mechanism, however, works in the opposite direction with either complements or two-way trade and homogeneous goods. In these cases, cutting trade barriers raises the sharable surplus and encourages domestic wage-setters to choose more centralised institutions.
Download InfoIf 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.
Bibliographic InfoPaper provided by Universitá degli Studi di Milano in its series UNIMI - Research Papers in Economics, Business, and Statistics with number unimi-1091.
Date of creation: 29 Oct 2009
Date of revision:
Contact details of provider:
Postal: Via Conservatorio 7 - 20122 Milano
Phone: +39 02 503 16486
Fax: +39 02 503 16475
Web page: http://services.bepress.com/unimi
More information through EDIRC
Endogenous wage bargaining institutions; Unionised oligopolies; Trade integration;
Other versions of this item:
- Michele SANTONI, 2009. "Does product market integration lead to decentralised wage bargaining institutions?," Departmental Working Papers 2009-43, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Domenico Buccella, 2011. "Labor unions and economic integration: A review," EconÃ³mica, Departamento de EconomÃa, Facultad de Ciencias EconÃ³micas, Universidad Nacional de La Plata, vol. 0, pages 25-89, January-D.
- Domenico Buccella, 2013.
"Unionsâ€™ bargaining coordination in multinational enterprises,"
Spanish Economic Association, vol. 4(4), pages 373-392, November.
- Domenico Buccella, 2011. "Unions’ Bargaining Coordination in Multinational Enterprises," FIW Working Paper series 061, FIW.
- Domenico Buccella, 2013. "Unions' bargaining coordination in multi-unit firms," Economics Bulletin, AccessEcon, vol. 33(1), pages 217-225.
- Beatrice Pagel & Christian Wey, 2013.
"Unionization Structures in International Oligopoly,"
CEIS, vol. 27(1), pages 1-17, 03.
- Pagel, Beatrice & Wey, Christian, 2012. "Unionization structures in international oligopoly," DICE Discussion Papers 44, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
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.