International Production and Wage Coordination in an Integrated Economy (revised)
Key aspects in economic integrated areas like the EU are both the internationalization of productive activities, which usually occurs in unionized countries, and the ongoing process of labor market integration. In a symmetric two-country duopoly model with integrated product markets, this paper investigates the incentives for unions to coordinate wage demands in the presence of transaction costs. It shows that, contrary to conventional wisdom, under certain conditions wage coordination could lead from a social point of view to a Pareto superior outcome respect to separate wage settings.
|Date of creation:||Jul 2011|
|Date of revision:|
|Contact details of provider:|| |
|Order Information:|| Postal: FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zhao, Laixun, 1998. "The Impact of Foreign Direct Investment on Wages and Employment," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 284-301, April.
- Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
- BORGHIJS, Alain & DU CAJU, Philip, 1999. "EMU and European trade union cooperation," Working Papers 1999013, University of Antwerp, Faculty of Applied Economics.
- Naylor, Robin, 1999.
"Union Wage Strategies and International Trade,"
Royal Economic Society, vol. 109(452), pages 102-25, January.
- Naylor, Robin, 1997. "Union Wage Strategies and International Trade," The Warwick Economics Research Paper Series (TWERPS) 480, University of Warwick, Department of Economics.
- Horn, H. & Wolinsky, A., 1988.
"Bilateral Monopolies And Incentives For Merger,"
410, Stockholm - International Economic Studies.
- Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
- Huizinga, Harry, 1993.
" International Market Integration and Union Wage Bargaining,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 95(2), pages 249-55.
- Huizinga, H.P., 1993. "International market integration and union wage bargaining," Other publications TiSEM 567712dd-8f03-40d8-8428-c, Tilburg University, School of Economics and Management.
- Straume, Odd Rune, 2002.
"Union collusion and intra-industry trade,"
International Journal of Industrial Organization,
Elsevier, vol. 20(5), pages 631-652, May.
- Straume, O.R., 1999. "Union Collusion and Intra-Industry Trade," Norway; Department of Economics, University of Bergen 1399, Department of Economics, University of Bergen.
- Chiara Strozzi, 2007. "Product Market Integration and Union Collusion," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 17-36, 02.
When requesting a correction, please mention this item's handle: RePEc:wsr:wpaper:y:2011:i:025. 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: ()
If references are entirely missing, you can add them using this form.