Integration of Product Markets when Labour Markets are Unionized
AbstractThis paper is a first attempt to analyse the consequences of establishing the internal market when taking account of labour market effects of product market integration. Our main focus is on market power, and we show that both labour unions and firms may lose market power when product markets become integrated. If this happens, it is likely that both workers and capitalists become better off. On the other hand, if the firms reestablish their market power through mergers or cooperation, capitalists gain, whereas workers lose. If neither firms nor unions lose market power, there are no effects of integration
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 1993044.
Date of creation: 01 Dec 1993
Date of revision:
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
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