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Wage Interdependence and Competitiveness

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  • David de la CROIX

    (FNRS and UCL)

Abstract

We build a multi-sector model with wage bargaining and imperfect competition to analyse the links between wage interdependence and competitiveness. Quantity constraints together with union power, firm market power and wage externalities play a significant role in the determination of competitiveness and in the transmission of shocks among sectors. This is verified by an empirical study on Belgian data. We identify leading sectors in wage formation and evaluate the effect of sector-specific shocks on the competitiveness of the other sectors.

Suggested Citation

  • David de la CROIX, 1993. "Wage Interdependence and Competitiveness," Discussion Papers (REL - Recherches Economiques de Louvain) 1993041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:1993041
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    Cited by:

    1. Drakopoulos, Stavros A., 2008. "The Concept Of Comparison Income: An Historical Perspective," MPRA Paper 8713, University Library of Munich, Germany.
    2. de la Croix, David, 1994. "Wage Interdependence through Decentralized Bargaining," Journal of Economic Surveys, Wiley Blackwell, vol. 8(4), pages 371-403, December.
    3. Drakopoulos, Stavros A., 2007. "Comparison Wage in Trade Union Decision Making," MPRA Paper 46287, University Library of Munich, Germany.

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