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Monopoly Unions and the Liberalisation of International Trade

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  • Driffill, John
  • van der Ploeg, Frederick

Abstract

The authors examine the effects of removing tariffs and trade barriers on the behavior of utilitarian trade unio ns using a two-country macroeconomic model. A "hump-shaped" relationshi p between wages and the degree of corporatism emerges here, analogousl y with closed-economy models. The completion of the internal market is shown to bid product wages down and boost employment, to raise consumption wages, and unambiguously to raise welfare. The removal o f trade barriers makes unions more likely to want to cooperate with unions abroad. Copyright 1993 by Royal Economic Society.

Suggested Citation

  • Driffill, John & van der Ploeg, Frederick, 1993. "Monopoly Unions and the Liberalisation of International Trade," Economic Journal, Royal Economic Society, vol. 103(417), pages 379-385, March.
  • Handle: RePEc:ecj:econjl:v:103:y:1993:i:417:p:379-85
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    References listed on IDEAS

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