This paper studies the effects of product market integration on wage-bargaining institutions. It first shows evidence of a negative correlation between the level of wage bargaining and proxy measures of integration, such as the degree of openness and import penetration, for a macro-panel of 17...

This paper studies the effects of product market integration on wage bargaining institutions. By considering an international Cournot–Nash oligopoly with unionised home firms and non-unionised foreign firms producing substitute goods, the paper shows that the relative size of the home and...