Egger, Hartmut; Etzel, Daniel - In: Regional Science and Urban Economics 48 (2014) C, pp. 56-67
union wage-setting. Being interested in the consequences of openness, we show that, in the short run, trade increases … outflows from the country with the more centralized wage-setting generate winners and losers and make the two countries more … dissimilar in terms of unemployment or welfare. Decentralization of wage-setting can successfully prevent capital outflow and the …