A country with Cournot competition and free entry experiences an increase of its market size either due to economic … growth or international integration of goods markets. The implied increase in competition leads to shrinking mark-ups and … terms can even lose in real terms. From a quantitative perspective, international competition is shown to be the more …

Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in …

of unions as alleviating market failures induced by imperfect competition. To validate our findings and examine …This paper brings together the modern literatures on monopsony power and labor unions by empirically examining the … robustness to different types of shocks, we extend the analysis by exploiting the emergence of import competition from China as …

institutional channel for the political effects of trade shocks: the weakening of labor unions. We provide support for this … mechanism in two steps. First, we show that union presence - proxied by the number of workers directly employed by unions, by … competition. Second, we show that the negative effect of tariff reductions on the votes for the left was driven exclusively by …

This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … unions can be desirable for income redistribution. Unions bargain with firms over wages in each sector and firms unilaterally … determine employment. Unions raise the efficiency costs of income redistribution, because unemployment benefits and income taxes …