Integration, Labor Market Regulation, Lobbying, and Technological Change
AbstractThis paper examines an economic union where oligopolistic firms produce by skilled and unskilled labor and do in-house R&D by skilled labor. The planner of the union accepts new members to the union, regulates the labor market through a minimum wage for unskilled labor and supports firms by taxation. Firms and workers lobby the planner for prospective policy. It is shown that in the political equilibrium small unions regulate the labor market but do not support firms, while large unions deregulate the labor market and support firms.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4096.
Length: 21 pages
Date of creation: Mar 2009
Date of revision:
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Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-LAB-2009-04-13 (Labour Economics)
- NEP-POL-2009-04-13 (Positive Political Economics)
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