Union Behavior, Industry Rents, and Optimal Policies
AbstractThis paper examines the supposed welfare gains from strategic trade and industrial policies in the U.S. steel industry. Strategic policies to capture labor rents lead to an endogenous response which greatly diminishes their importance. On the other hand, reducing domestic labor market distortions results in welfare gains nearly as large as those from optimal trade and industrial policies. The paper concludes that the focus on labor rents as the subject of U.S. trade and industrial policy is overstated, at least in manufacturing industries such as integrated steel.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 96/143.
Date of creation: 01 Dec 1996
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Other versions of this item:
- Swagel, Phillip, 2000. "Union behavior, industry rents, and optimal policies," International Journal of Industrial Organization, Elsevier, vol. 18(6), pages 925-947, August.
- Phillip Swagel, 1993. "Union behavior, industry rents, and optimal policies," International Finance Discussion Papers 459, Board of Governors of the Federal Reserve System (U.S.).
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