We analyze unionized firms’ incentives to outsource intermediate goods production to foreign (low-cost) subcontractors. Such outsourcing leads to increased wages for the remaining in-house production. We find that stronger unions, which imply higher domestic wages, reduce incentives for...

We find that trade unions have a rational incentive to oppose the adaption of labour-saving technology when labour demand is inelastic and unions care much for employment relative to wages. Trade liberalisation typically increases trade union technology opposition. These conclusions are reached...

We study how incentives for North-South technology transfers in multinational enterprises are affected by labour market institutions. If workers are collectively organised,incentives for technology transfers are partly governed by firms' desire to curb trade union power. This will affect not...

This paper sets up a general oligopolistic equilibrium trade model for two integrated countries that are similar in all respects except of the prevailing labor market institutions. In one country, the labor market is perfectly competitive, while in the other country labor unions are active in a...