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Oligopoly, open shop unions and trade liberalisation

  • Bastos, Paulo
  • Kreickemeier, Udo
  • Wright, Peter

In an international duopoly model, we investigate how trade liberalisation impacts on collective bargaining outcomes when workers are represented by open shop unions. We find that, with intermediate levels of union density, trade liberalisation may lead to higher negotiated wages even if no trade occurs in equilibrium. In addition, we show that union wages may be higher with free trade than in autarky.

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Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 27 (2009)
Issue (Month): 6 (November)
Pages: 679-686

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Handle: RePEc:eee:indorg:v:27:y:2009:i:6:p:679-686
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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