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Labor union and firm fs relocation: A general oligopolistic equilibrium model analysis


  • Hosaki Sano

    (Graduate School of Economics, Osaka University)


This paper presents a multi-sector general oligopolistic equilibrium trade model in which unionized and nonunionized sectors interact. We investigate how a country fs labor union structure affects firm fs relocation. Firstly, we analyze the case of international trade between unionized country and non-unionized country. As a result, non-unionized country should lower the unemployment benefit to attract firms. Secondly, we analyze the case of international trade between partial unionized country and non-unionized country. When the proportion of unionized sector is low, welfares of countries are equal, otherwise, unionized country fs welfare is lower than non-unionized. Comparing non relocation case, difference of welfare is larger.

Suggested Citation

  • Hosaki Sano, 2018. "Labor union and firm fs relocation: A general oligopolistic equilibrium model analysis," Discussion Papers in Economics and Business 18-15, Osaka University, Graduate School of Economics.
  • Handle: RePEc:osk:wpaper:1815

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    labor union; international trade; general oligopolistic equilibrium;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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