Unionized Wage Setting and the Location of Firms
We analyze how unionized wage setting a¤ects the location of firms. We find that the degree of centralization (at firm or sectoral level) and regionalization (at regional or supra-regional level) is crucial. We show that wage setting at the firm level is the best policy to attract firms when trade costs are low, while wage setting at a more centralized level is most effective to attract firms when trade costs are high. Moreover, wage setting at the supra-regional level is beneficial for the already more agglomerated region and hurts the peripheral region.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Web page: https://feb.kuleuven.be/VIVES/vivesenglish/general/|
When requesting a correction, please mention this item's handle: RePEc:ete:vivwps:9. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB)
If references are entirely missing, you can add them using this form.