Endogenous determination of trade regime and bargaining outcome
We show that whether trade is one-way or two-way depends on wage strategies adopted by trade unions. The unionâ€™s wage strategy choices themselves depend upon the conditions under which trade takes place, as well as upon the characteristics of both the labour and the product markets in the trading countries. The impact of economic integration on union choices and therefore upon both labour market and trade outcomes is shown to vary according to the nature of the prevailing trade regime. We generate testable hypotheses and discuss the implications for the development of econometric tests of these hypotheses.
|Date of creation:||1999|
|Contact details of provider:|| Postal: Via S. Giorgio 12, I-09124 Cagliari|
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- Naylor, Robin, 1999.
"Union Wage Strategies and International Trade,"
Royal Economic Society, vol. 109(452), pages 102-125, January.
- Naylor, Robin, 1997. "Union Wage Strategies and International Trade," The Warwick Economics Research Paper Series (TWERPS) 480, University of Warwick, Department of Economics.
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- Noel Gaston & Daniel Trefler, 1994. "Protection, Trade, and Wages: Evidence from U.S. Manufacturing," ILR Review, Cornell University, ILR School, vol. 47(4), pages 574-593, July. Full references (including those not matched with items on IDEAS)
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