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Monopoly Unions and the Liberalisation of International Trade

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Author Info
Driffill, John
van der Ploeg, Frederick

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Abstract

The authors examine the effects of removing tariffs and trade barriers on the behavior of utilitarian trade unio ns using a two-country macroeconomic model. A "hump-shaped" relationshi p between wages and the degree of corporatism emerges here, analogousl y with closed-economy models. The completion of the internal market is shown to bid product wages down and boost employment, to raise consumption wages, and unambiguously to raise welfare. The removal o f trade barriers makes unions more likely to want to cooperate with unions abroad. Copyright 1993 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 103 (1993)
Issue (Month): 417 (March)
Pages: 379-85
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Handle: RePEc:ecj:econjl:v:103:y:1993:i:417:p:379-85

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  1. Frederick van der Ploeg, 2003. "Do Social Policies Harm Employment and Growth?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. S. Bandyopadhyay & S. C. Bandyopadhyay, 1998. "Monopoly Unions And Corporatism: Implications For Strategic Trade Policy," International Economic Journal, Korean International Economic Association, vol. 12(4), pages 1-22, December. [Downloadable!] (restricted)
  3. Lommerud, Kjell Erik & Meland, Frode & Sorgard, Lars, 2002. "Unionized Oligopoly, Trade Liberalization and Location Choice," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  4. Andersen, Torben M. & Skaksen , Jan Rose, 2006. "Product Market Integration, Comparative Advantages and Labour Market Performance," Working Papers 08-2004, Copenhagen Business School, Department of Economics. [Downloadable!]
  5. Pekka Sinko & Juha Kilponen, 2001. "Labour Taxation and the Degree of Centralisation in a Trade Union Model with Endogenous Labour Supply," Discussion Papers 250, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  6. Sebastian Weber, 2006. "Labor Market Structures, Trade and their Effect on Unemployment: A Theoretical Analysis and Empirical Investigation," HEI Working Papers 22-2006, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  7. Frederick VAN DER PLOEG, 2004. "DO SOCIAL POLICIES HARM EMPLOYMENT? Second-best effects of taxes and benefits on labor markets," Economics Working Papers ECO2004/11, European University Institute. [Downloadable!]
  8. Alain Borghijs & Sjef Ederveen & Ruud de Mooij, 2003. "European Wage Coordination: Nightmare or dream to come true?," Economics Working Papers 020, European Network of Economic Policy Research Institutes. [Downloadable!]
  9. Carsten Hefeker, 2002. "Lohnpolitik und Geldpolitik in Euroland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 71(3), pages 354-367.
  10. Alain Borghijs & Sjef Ederveen & Ruud de Mooij, . "European wage coordination: Nightmare or dream to come true? An economic analysis of wage bargaining institutions in the EU," CPB Discussion Papers 17, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  11. Jakob Munch & Jan Sørensen, 2000. "Competitiveness and Integration of Product Markets," Open Economies Review, Springer, vol. 11(4), pages 359-381, October. [Downloadable!] (restricted)
  12. Andersen, Torben M. & Skaksen, Jan Rose, 2003. "Product Market Integration, Comparative Advantages and Labour Market Performance," IZA Discussion Papers 698, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Lindbeck, Assar & Snower, Dennis J., 1997. "Centralized Bargaining, Multi-Tasking and Work Incentives," Seminar Papers 620, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  14. Holmlund, Bertil & Kolm, Ann-Sofie, 1999. "Economic Integration, Imperfect Competition, and International Policy Coordination," Working Paper Series 1999:7, Uppsala University, Department of Economics. [Downloadable!]
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  15. Juha Kilponen & Pekka Sinko, 2005. "Does Centralised Wage Setting Lead into Higher Taxation," Labor and Demography 0509013, EconWPA. [Downloadable!]
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  16. Pekka Sinko, 2005. "Does Centralised Wage Setting Lead into Higher Taxation?," Labor and Demography 0509007, EconWPA. [Downloadable!]
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