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Market Integration and Strike Activity

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  • Ana, MAULEON
  • Vincent, VANNETELBOSCH

Abstract

We consider a two-country model of wage determination with private information in unionized imperfectly competitive industries. We investigate the effects of separated product markets opening up for competition as well as of further market integration on the negociated wage and the maximum delay in reaching an agreement. From an initial situation of reciprocal intra-industry trade, an increase in product market integration will decrease the maximal delay in reaching an agreement. However, markets opening up for competition have an ambiguous effect on both the wage outcome and the maximum real delay time in reaching an agreement.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2005025.

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Length: 25
Date of creation: 01 Apr 2005
Date of revision:
Handle: RePEc:ctl:louvec:2005025

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Keywords: economic integration; product market competition; wage bargaining; strike activity;

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Cited by:
  1. Ana, MAULEON & Vincent, VANNETELBOSCH, 2005. "Market Integration and Strike Activity," Discussion Papers (ECON - Département des Sciences Economiques) 2005025, Université catholique de Louvain, Département des Sciences Economiques.
  2. Journée, Michel, 2010. "Generalized power method for sparse principal component analysis," Open Access publications from Université catholique de Louvain info:hdl:2078.1/33456, Université catholique de Louvain.
  3. MAULEON, Ana & VANNETELBOSCH, Vincent & VERGARI, Cecilia, 2010. "Unions' relative concerns and strikes in wage bargaining," CORE Discussion Papers 2010076, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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