. Owing to this linkage, trade cost reductions induce cartel members to adjust their sales, not only due to direct effects …, but also due to spillover effects related to cartel discipline. We apply these ideas to preferential trade agreements … (PTAs) and show that the indirect effects can give rise to trade diversion. We also characterize the welfare effects of …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …

labour costs overseas and that it offers a means to ‘escape’ the power of unions. We develop an oligopoly model in which … typically results in higher wages and does not always reduce marginal costs. Trade liberalisation favours outsourcing … particularly for the relatively less efficient firms. -- Outsourcing ; Unionisation ; Strategic Investment ; Trade Liberalisation …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …

union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases … institutions ; Trade liberalization ; Capital mobility ; Decentralization in union wage setting …

union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases … export of jobs. -- general oligopolistic equilibrium ; union wage setting ; asymmetric labor market institutions ; trade …

labour market interdependencies and the consequences of trade liberalisation for union wages. The analysis suggests that … the assumption of linear demand it is shown that bilateral trade liberalisation always leads to higher union set wages and …

large firms (oligopoly) and small firms (monopolistic competition). We will provide new implication of trade gain … firms. The demand of high-quality workers widens wage inequality within country. Small firms lose from trade. However, the … produce more, and to demand more high-quality workers. The expansion of output-schedules crowds out the production of small …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …

the level of trade openness is. However, when the domestic government is biased we find that globalization reinforces the …