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Structural Change and the Labor‐market Effects of Globalization

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  • Noel Gaston
  • Douglas Nelson

Abstract

The paper develops a simple political‐economy model of unemployment benefit determination in a small open economy characterized by bargaining between firms and unions. The authors derive a number of comparative static results and present empirical results for a panel of OECD countries that are broadly consistent with the theory.

Suggested Citation

  • Noel Gaston & Douglas Nelson, 2004. "Structural Change and the Labor‐market Effects of Globalization," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 769-792, November.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:5:p:769-792
    DOI: 10.1111/j.1467-9396.2004.00481.x
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    References listed on IDEAS

    as
    1. Leamer, E.E., 1995. "The Heckscher-Ohlin Model in Theory and Practice," Princeton Studies in International Economics 77, International Economics Section, Departement of Economics Princeton University,.
    2. Rebecca M. Blank, 1994. "Introduction to "Social Protection versus Economic Flexibility: Is There a Trade-Off?"," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 1-20, National Bureau of Economic Research, Inc.
    3. Rebecca M. Blank, 1994. "Social Protection versus Economic Flexibility: Is There a Trade-Off?," NBER Books, National Bureau of Economic Research, Inc, number blan94-1.
    4. Swank,Duane, 2002. "Global Capital, Political Institutions, and Policy Change in Developed Welfare States," Cambridge Books, Cambridge University Press, number 9780521806688, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Martin Gassebner & Noel Gaston & Michael J. Lamla, 2011. "The Inverse Domino Effect: Are Economic Reforms Contagious?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 183-200, February.
    2. Chang, Chun-Ping & Berdiev, Aziz N. & Lee, Chien-Chiang, 2013. "Energy exports, globalization and economic growth: The case of South Caucasus," Economic Modelling, Elsevier, vol. 33(C), pages 333-346.
    3. Boulhol, Herv, 2009. "Do capital market and trade liberalization trigger labor market deregulation?," Journal of International Economics, Elsevier, vol. 77(2), pages 223-233, April.
    4. repec:old:wpaper:348 is not listed on IDEAS
    5. Stephanie Meinhard & Niklas Potrafke, 2012. "The Globalization–Welfare State Nexus Reconsidered," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 271-287, May.
    6. Axel Dreher & Noel Gaston, 2008. "Has Globalization Increased Inequality?," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 516-536, August.
    7. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
    8. Hervé Boulhol, 2006. "Do capital market and trade liberalization trigger labor market deregulation?," Post-Print halshs-00118951, HAL.
    9. Niccolò Innocenti & Daniele Vignoli & Luciana Lazzeretti, 2021. "Economic complexity and fertility: insights from a low fertility country," Regional Studies, Taylor & Francis Journals, vol. 55(8), pages 1388-1402, August.
    10. Carsten Helm & Dominique Demougin, 2012. "Incentive Contracts and Efficient Unemployment Benefits in a Globalized World," Working Papers V-348-12, University of Oldenburg, Department of Economics, revised Aug 2012.
    11. Özlem Onaran, 2007. "The effects of globalization on income distribution," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 100, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    12. Zohal Hessami & Thushyanthan Baskaran, 2015. "Has Globalisation Affected Collective Bargaining? An Empirical Test, 1980–2009," The World Economy, Wiley Blackwell, vol. 38(12), pages 1880-1911, December.
    13. Laszlo Goerke & Markus Pannenberg & Heinrich Ursprung, 2010. "A positive theory of the earnings relationship of unemployment benefits," Public Choice, Springer, vol. 145(1), pages 137-163, October.
    14. Chatri, Abdellatif & Maarouf, Abdelwahab & Ezzahid, Elhaj, 2015. "Productivité agricole, intégration et transformation structurelle de l’économie marocaine [Agricultural productivity, integration and structural transformation of the Moroccan economy]," MPRA Paper 71774, University Library of Munich, Germany, revised Jan 2016.
    15. repec:zbw:hohpro:348 is not listed on IDEAS
    16. Niklas Potrafke, 2010. "Labor market deregulation and globalization: empirical evidence from OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 545-571, September.
    17. Chang, Chun Ping & Berdiev, Aziz N., 2011. "The political economy of energy regulation in OECD countries," Energy Economics, Elsevier, vol. 33(5), pages 816-825, September.
    18. Hartmut Egger & Frode Meland, 2011. "Product and Labor Market Deregulation in Unionized Oligopoly with Asymmetric Countries," CESifo Working Paper Series 3611, CESifo.
    19. Noel Gaston & Gulasekaran Rajaguru, 2004. "The Rise (and Fall) of Labour Market Programmes: The Role of Global and Domestic Factors," ISER Discussion Paper 0615, Institute of Social and Economic Research, Osaka University.
    20. Noel Gaston, 2008. "Understanding Australian Income Inequality: The Proper Role played by Globalisation, De-unionisation and the Terms of Trade," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 15(1), pages 49-66.
    21. Hyeon‐Seung Huh & Cyn‐Young Park, 2021. "A new index of globalisation: Measuring impacts of integration on economic growth and income inequality," The World Economy, Wiley Blackwell, vol. 44(2), pages 409-443, February.

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