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Market integration and strike activity

  • Mauleon, Ana
  • Vannetelbosch, Vincent

We consider a two-country model of wage determination with private information in unionized, imperfectly competitive, industries. We investigate the effects of opening up markets to trade as well as of further market integration on the negotiated wage and the maximum delay in reaching an agreement. From an initial situation of two-way intra-industry trade, an increase in product market integration decreases the maximum delay in reaching an agreement. However, opening up markets to trade has an ambiguous effect on both the wage outcome and the maximum real delay time.

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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 81 (2010)
Issue (Month): 1 (May)
Pages: 154-161

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Handle: RePEc:eee:inecon:v:81:y:2010:i:1:p:154-161
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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  16. Peter C. Cramton, 1992. "Strategic Delay in Bargaining with Two-Sided Uncertainty," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 205-225.
  17. MAULEON , Ana & VANNETELBOSCH, Vincent J., . "Market competition and strike activity," CORE Discussion Papers RP 1658, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  20. John M. Abowd & Joseph S. Tracy, 1988. "Market Structure, Strike Activity, and Union Wage Settlements," NBER Working Papers 2595, National Bureau of Economic Research, Inc.
  21. Kennan, John, 1987. "The economics of strikes," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 19, pages 1091-1137 Elsevier.
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