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International Labor Union Policy and Growth with Creative Destruction

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  • Tapio Palokangas

Abstract

A multi‐economy Schumpeterian growth model is constructed. Economies are interdependent through technology transfer. Households can stay as workers or become researchers at some cost. Workers are employed in production and researchers in R&D. Workers are unionized and union power depends on the government's protection. The main findings are as follows. If international technological dependence increases, then workers’ wages, the growth rate, and the level of welfare fall. The international coordination of labor union policy raises workers’ wages and promotes growth and welfare.

Suggested Citation

  • Tapio Palokangas, 2005. "International Labor Union Policy and Growth with Creative Destruction," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 90-105, February.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:1:p:90-105
    DOI: 10.1111/j.1467-9396.2005.00493.x
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    1. Palokangas,Tapio, 2010. "Labour Unions, Public Policy and Economic Growth," Cambridge Books, Cambridge University Press, number 9780521144056.
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    Cited by:

    1. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    2. Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(3), pages 273-299, June.
    3. Palokangas, Tapio K., 2005. "Economic Integration, Market Power and Technological Change," IZA Discussion Papers 1592, Institute of Labor Economics (IZA).
    4. Wolf-Heimo Grieben & Fuat Sener, 2009. "Labor Unions, Globalization, and Mercantilism," CESifo Working Paper Series 2889, CESifo.
    5. Colin Davis & Ken-ichi Hashimoto & Ken Tabata, 2021. "Unionization, Industry Concentration, and Economic Growth," ISER Discussion Paper 1154, Institute of Social and Economic Research, Osaka University.
    6. Grieben, Wolf-Heimo & Şener, Fuat, 2017. "Wage bargaining, trade and growth," Research in Economics, Elsevier, vol. 71(3), pages 564-587.
    7. Palokangas, Tapio K., 2009. "Integration, Labor Market Regulation, Lobbying, and Technological Change," IZA Discussion Papers 4096, Institute of Labor Economics (IZA).

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