Labor Unions, Unemployment, and Trade and Capital Liberalization
This paper utilizes a specific factor model where rewards to labor and capi - tal, and employment are determined by efficient bargaining between entrepre - neurs and workers in each sector. Union threat points arise endogenously since workers’ outside opportunities in one sector depend on the bargain struck in the other sector. This fully unionized economy will generally be characterized by unemployment and inter- industry wage differentials. Both trade and capital liberalization may lead to an increase in overall employment.
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Volume (Year): 15 (2000)
Issue (Month): ()
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