Article ID Journal Published Year Pages File Type
5078239 International Journal of Industrial Organization 2009 8 Pages PDF
Abstract

In an international duopoly model, we investigate how trade liberalisation impacts on collective bargaining outcomes when workers are represented by open shop unions. We find that, with intermediate levels of union density, trade liberalisation may lead to higher negotiated wages even if no trade occurs in equilibrium. In addition, we show that union wages may be higher with free trade than in autarky.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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