After the end of World War II, the United States, by far the dominant economic and military power at that time, joined with the surviving capitalist democracies to create an unprecedented institutional framework. By the 1980s many contended that these institutions--the General Agreement on...

National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggest that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an...