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Integration of Product Markets when Labour Markets are Unionized

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  • Jan Rose SØRENSEN

    (University of Aarhus)

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    Abstract

    This 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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    File URL: http://www.jstor.org/stable/40724036
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    Bibliographic Info

    Paper 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.

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    Length: 17
    Date of creation: 01 Dec 1993
    Date of revision:
    Handle: RePEc:ctl:louvre:1993044

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    Web page: http://www.uclouvain.be/ires
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    Cited by:
    1. Kjell Erik Lommerud & Frode Meland & Lars S¯rgard, 2003. "Unionised Oligopoly, Trade Liberalisation and Location Choice," Economic Journal, Royal Economic Society, vol. 113(490), pages 782-800, October.
    2. Hartmut Egger & Daniel Etzel, 2010. "The Impact of Trade on Employment, Welfare, and Income Distribution in Unionized General Oligopolistic Equilibrium," Working Papers 088, Bavarian Graduate Program in Economics (BGPE).
    3. MAULEON, Ana & VANNETELBOSCH, Vincent, . "Market integration and strike activity," CORE Discussion Papers RP -2201, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Jakob Munch & Jan Sørensen, 2000. "Competitiveness and Integration of Product Markets," Open Economies Review, Springer, vol. 11(4), pages 359-381, October.
    5. Bastos, Paulo & Kreickemeier, Udo, 2009. "Unions, competition and international trade in general equilibrium," Journal of International Economics, Elsevier, vol. 79(2), pages 238-247, November.
    6. Andersen, Torben M. & Skaksen , Jan Rose, 2006. "Product Market Integration, Comparative Advantages and Labour Market Performance," Working Papers 08-2004, Copenhagen Business School, Department of Economics.
    7. Dibyendu Maiti & Arijit Mukherjee, . "Trade Liberalisation, Subcontracting and Unionised Wage," Discussion Papers 10/07, University of Nottingham, GEP.
    8. Torben Andersen & Jan Skaksen, 2007. "Labour Demand, Wage Mark-ups and Product Market Integration," Journal of Economics, Springer, vol. 92(2), pages 103-135, October.
    9. Ana MAULEON & Vincent J. VANNETELBOSCH, 2001. "Product Market Integration, Wage Bargaining and Strike Activity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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