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The endogenous decisions of unionization and international trade: A general oligopolistic equilibrium model analysis

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  • Hosaki Sano

Abstract

This paper presents a multi‐sectoral general oligopolistic equilibrium trade model in which unionized and non‐unionized sectors interact. In our model, the proportion of unionized sectors is endogenously determined. We show that this proportion depends on exogenous parameters such as productivity, population, number of firms, union costs and labor union formation. We also show that trade openness between symmetric countries raises the competitive wage and lowers the proportion of unionized sectors.

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  • Hosaki Sano, 2020. "The endogenous decisions of unionization and international trade: A general oligopolistic equilibrium model analysis," Manchester School, University of Manchester, vol. 88(5), pages 641-663, September.
    • Handle: RePEc:bla:manchs:v:88:y:2020:i:5:p:641-663
    DOI: 10.1111/manc.12314
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    References listed on IDEAS

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    1. J. Peter Neary, 2016. "International Trade in General Oligopolistic Equilibrium," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 669-698, September.
    2. Mezzetti, Claudio & Dinopoulos, Elias, 1991. "Domestic unionization and import competition," Journal of International Economics, Elsevier, vol. 31(1-2), pages 79-100, August.
    3. Egger, Hartmut & Etzel, Daniel, 2012. "The impact of trade on employment, welfare, and income distribution in unionized general oligopolistic equilibrium," European Economic Review, Elsevier, vol. 56(6), pages 1119-1135.
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    6. Paulo Bastos & Udo Kreickemeier, 2017. "Unions, Competition, and International Trade in General Equilibrium," World Scientific Book Chapters, in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 6, pages 143-172, World Scientific Publishing Co. Pte. Ltd..
    7. Egger, Hartmut & Etzel, Daniel, 2014. "Union wage-setting and international trade with footloose capital," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 56-67.
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