Unionized Labor Markets and Globalized Capital Markets
AbstractThis paper studies the effects of international integration of capital markets in a world where countries differ in their labor market institutions: one country has a perfectly competitive labor market while the other is unionized. We show that workers should favor autarky in the unionized country, but oppose it in the non unionized country and vice versa for owners of capital. Aggregate gains from integration, however, are negative. We also show that, under capital mobility, an increase in relative bargaining power of unions does not always improve workers’ welfare.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM) in its series Discussion Papers with number 08/10.
Date of creation:
Date of revision:
Contact details of provider:
Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/cfcm/index.aspx
More information through EDIRC
Capital mobility; Globalization; Unions; Welfare.;
Other versions of this item:
- Aloi, Marta & Leite-Monteiro, Manuel & Lloyd-Braga, Teresa, 2009. "Unionized labor markets and globalized capital markets," Journal of International Economics, Elsevier, vol. 78(1), pages 149-153, June.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- CREMER, Helmuth & FOURGEAUD, Virginie & LEITE MONTEIRO, Manuel & MARCHAND, Maurice, 1995.
"Mobility and Redistribution : A Survey,"
CORE Discussion Papers
1995066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Zhao, Laixun, 2001. "Unionization, vertical markets, and the outsourcing of multinationals," Journal of International Economics, Elsevier, vol. 55(1), pages 187-202, October.
- Wilson, John Douglas & Wildasin, David E., 2004. "Capital tax competition: bane or boon," Journal of Public Economics, Elsevier, vol. 88(6), pages 1065-1091, June.
- Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
- Robin Naylor & Michele Santoni, 2003.
"Foreign direct investment and wage bargaining,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 12(1), pages 1-18.
- Skaksen, Mette Yde & Sorensen, Jan Rose, 2001. "Should trade unions appreciate foreign direct investment," Journal of International Economics, Elsevier, vol. 55(2), pages 379-390, December.
- Eaton, Jonathan & Panagariya, Arvind, 1979. "Gains from trade under variable returns to scale, commodity taxation, tariffs and factor market distortions," Journal of International Economics, Elsevier, vol. 9(4), pages 481-501, November.
- Joseph E. Stiglitz, 2004. "Capital-market Liberalization, Globalization, and the IMF," Oxford Review of Economic Policy, Oxford University Press, vol. 20(1), pages 57-71, Spring.
- Harry C. Katz, 1993. "The decentralization of collective bargaining: A literature review and comparative analysis," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 3-22, October.
- Donado, Alejandro & Wälde, Klaus, 2012. "Globalization, trade unions and labour standards in the North," ILO Working Papers 469448, International Labour Organization.
- Rüdiger Pethig & Frieder Kolleß, 2009.
"Asymmetric capital-tax competition, unemployment and losses from capital market integration,"
137-09, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Rüdiger Pethig & Frieder Kolleß, 2009. "Asymmetric Capital-Tax Competition, Unemployment and Losses from Capital Market Integration," CESifo Working Paper Series 2795, CESifo Group Munich.
- Rüdiger Pethig & Frieder Kolleß, 2009. "Asymmetric capital-tax competition, unemployment and losses from capital market integration," MAGKS Papers on Economics 200940, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Donado, Alejandro & Wälde, Klaus, 2010.
"How bad is globalization for labour standards in the north?,"
W.E.P. - WÃ¼rzburg Economic Papers
84, University of Würzburg, Chair for Monetary Policy and International Economics.
- Alejandro DONADO & Klaus WALDE, 2010. "How Bad is Globalization for Labour Standards in the North?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Alejandro Donado & Klaus Wälde, 2010. "How Bad is Globalization for Labour Standards in the North?," FIW Working Paper series 059, FIW.
- Alejando Donado & Klaus Wälde, 2010. "How Bad is Globalization for Labour Standards in the North?," Working Papers 1011, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 19 Aug 2010.
- Thomas Aronsson & Erkki Koskela, 2009. "Optimal Income Taxation, Outsourcing and Policy Cooperation in a Dynamic Economy," CESifo Working Paper Series 2776, CESifo Group Munich.
- Domenico Buccella, 2011. "Labor unions and economic integration: A review," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 25-89, January-D.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes).
If references are entirely missing, you can add them using this form.