This paper sets up a general oligopolistic equilibrium model with two countries that differ in the centralization of union wage-setting. Being interested in the consequences of openness, we show that, in the short run, trade increases welfare and employment in both locations, and it raises...

We show the effects of trade cost reduction in the presence of a domestic firm's strategic output allocation between formal in-house production and subcontracting to the informal sector. Considering a one-way trade, we show that trade cost reduction increases the in-house unionised wage,...

This paper sets up a multi-sector general oligopolistic equilibrium trade model in which all firms face wage claims of firm-level unions. By accounting for productivity differences across industries, the model features income inequality along multiple lines, including inequality between firm...

We study how unionization affects competitive selection between heterogeneous firms when wage negotiations can occur at the firm or at the profit-centre level. With productivity specific wages, an increase in union power has: (i) a selection-softening; (ii) a counter-competitive; (iii) a...

Während Unternehmen über nationale Grenzen hinweg in globalen Wertschöpfungsnetzwerken operieren, stehen transnationale gewerkschaftliche Organisierungsstrategien häufig noch am Anfang. Angesichts der Asymmetrie zwischen global entgrenzter Produktion und (vornehmlich) nationalstaatlich...

Während Unternehmen über nationale Grenzen hinweg in globalen Wertschöpfungsnetzwerken operieren, stehen transnationale gewerkschaftliche Organisierungsstrategien häufig noch am Anfang. Angesichts der Asymmetrie zwischen global entgrenzter Produktion und (vornehmlich) nationalstaatlich...

The North American Free Trade Agreement (NAFTA) once again became a newsworthy topic in the US media, this time during the contested Spring 2008 Democratic primary for the US presidency, particularly from campaign talking-points originating within Midwestern Rust-Belt states. Although the merits...

This paper studies the interaction between trade unions, which set wages, and a policymaker, who decides on the level of unemployment benefits and taxes. If the policymaker cannot commit to future policies, taxes and benefits are excessively high in equilibrium. Moreover, employment and output...

Az ÉT (ma az OMT és a Gazdasági Tanács) résztvevői régóta érdekeltek az adó- és a járulékrendszer olyan átfogó átalakításában, amely az eddigieknél, illetve a mainál kedvezőbb feltételeket teremtene a vállalkozások számára, csökkentené működési költségeiket, s...

Does trade affect the equilibrium rate of unemployment? To answer this question, we propose a small open economy model that incorporates realistic features of labour markets. The model predicts that a sustained improvement in the terms of trade lowers unemployment. We test this prediction for...