Union wage strategies and international trade
UNSPECIFIED. (1999) Union wage strategies and international trade. ECONOMIC JOURNAL, 109 (452). pp. 102-125. ISSN 0013-0133Full text not available from this repository.
We characterise a full set of possible international trade regimes for different combinations of wages in a two-country model of oligopoly with a homogeneous product. We show that the nature of any equilibrium trade will he either inter-industry (one-way) or intra-industry (two-way) depending on (endogenous) union choices between high and low-wage strategies. We show that intra-industry trade is the more likely the lower are trade costs, and that under intra-industry trade, falling trade costs lead monopoly unions to set higher wages, but the opposite obtains under inter-industry trade.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HC Economic History and Conditions|
|Journal or Publication Title:||ECONOMIC JOURNAL|
|Publisher:||BLACKWELL PUBL LTD|
|Official Date:||January 1999|
|Number of Pages:||24|
|Page Range:||pp. 102-125|
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