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The labor market effects of trade unions - Layard meets Melitz

Author

Listed:
  • Jochen Michaelis

    (Department of Economics, University of Kassel)

  • Marco de Pinto

    (Institute for Labour Law and Industrial Relations in the EU, University of Trier)

Abstract

Trade unions are typically able to convert their industrial power into political power. We show that, depending on the parameter constellation, stronger trade unions may be welfare-improving in terms of an increase in aggregate employment and output, if they successfully lobby for lower trade barriers set by the government.

Suggested Citation

  • Jochen Michaelis & Marco de Pinto, 2014. "The labor market effects of trade unions - Layard meets Melitz," IAAEU Discussion Papers 201406, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:dpaper:201406
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade unions; lobbying; trade liberalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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