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Integration of Product Markets when Labour Markets are Unionized

Author

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  • Jan Rose SØRENSEN

    (University of Aarhus)

Abstract

This paper is a first attempt to analyse the consequences of establishing the internal market when taking account of labour market effects of product market integration. Our main focus is on market power, and we show that both labour unions and firms may lose market power when product markets become integrated. If this happens, it is likely that both workers and capitalists become better off. On the other hand, if the firms reestablish their market power through mergers or cooperation, capitalists gain, whereas workers lose. If neither firms nor unions lose market power, there are no effects of integration

Suggested Citation

  • Jan Rose SØRENSEN, 1993. "Integration of Product Markets when Labour Markets are Unionized," Discussion Papers (REL - Recherches Economiques de Louvain) 1993044, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvre:1993044
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    File URL: http://www.jstor.org/stable/40724036
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mauleon, Ana & Vannetelbosch, Vincent, 2010. "Market integration and strike activity," Journal of International Economics, Elsevier, pages 154-161.
    2. Kjell Erik Lommerud & Frode Meland & Lars S¯rgard, 2003. "Unionised Oligopoly, Trade Liberalisation and Location Choice," Economic Journal, Royal Economic Society, vol. 113(490), pages 782-800, October.
    3. Andersen, Torben M. & Skaksen, Jan Rose, 2003. "Product Market Integration, Comparative Advantages and Labour Market Performance," IZA Discussion Papers 698, Institute for the Study of Labor (IZA).
    4. Egger, Hartmut & Etzel, Daniel, 2012. "The impact of trade on employment, welfare, and income distribution in unionized general oligopolistic equilibrium," European Economic Review, Elsevier, vol. 56(6), pages 1119-1135.
    5. repec:wsi:wschap:9789813224919_0006 is not listed on IDEAS
    6. Jakob Munch & Jan Sørensen, 2000. "Competitiveness and Integration of Product Markets," Open Economies Review, Springer, pages 359-381.
    7. Ana MAULEON & Vincent J. VANNETELBOSCH, 2001. "Product Market Integration, Wage Bargaining and Strike Activity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Torben Andersen & Jan Skaksen, 2007. "Labour Demand, Wage Mark-ups and Product Market Integration," Journal of Economics, Springer, pages 103-135.
    9. Dibyendu Maiti & Arijit Mukherjee, "undated". "Trade Liberalisation, Subcontracting and Unionised Wage," Discussion Papers 10/07, University of Nottingham, GEP.
    10. Bastos, Paulo & Kreickemeier, Udo, 2009. "Unions, competition and international trade in general equilibrium," Journal of International Economics, Elsevier, pages 238-247.
    11. Paulo Bastos & Udo Kreickemeier, 2017. "Unions, Competition, and International Trade in General Equilibrium," World Scientific Book Chapters,in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 6, pages 143-172 World Scientific Publishing Co. Pte. Ltd..

    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other

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