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,...

La literatura que analiza el efecto de la inversión directa extranjera ha estudiado, principalmente, la repercusión que tiene sobre el bienestar social de un país la localización en él de una empresa. En este artículo, por el contrario, analizamos cómo se ve afectado el bienestar social...

How does employer market power affect workers? We compute the concentration of new hires by occupation and commuting zone in France using linked employer-employee data. Using instrumental variables with worker and firm fixed effects, we find that a 10% increase in labor market concentration...

We derive the sub-game perfect Nash equilibria for the foreign direct investment (FDI) game played between two unionised firms. Among other results, we show that FDI is less likely, ceteris paribus, the greater is union bargaining power, the stronger the weight the union attaches to wages, and...

In this paper we analyse the impact of changes in product market competition on wage outcomes in the presence of an open shop union. With less than full union membership, product market competition is shown to affect not only a unionised firm's profits but also its payoff in the event of a...

In a framework of a unionised oligopoly, this paper reconsiders the impact of the bargaining structure on union wages. In particular, two dimensions along which centralisation may occur, namely the professional and firm line, are integrated into one modelling framework. It will be shown that,...

We analyse how the presence of trade unions affects the pattern of mergers in an international oligopoly and the welfare implications thereof. We find that an international merger results in lower wages for all firms. A national merger results in higher wages, highest for the non-merging firms....

We examine how a merger affects wages of unionized labour and, in turn, the profitability of a merger under both Cournot and Bertrand competition.If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages.

An international oligopoly model with unionised and non-unionised firms is constructed to make predictions about the pattern of international mergers.

This paper analyses the scope for collusive behaviour within the context of an international duopoly supergame in which both firms and monopoly labour unions interact strategically.