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Labor union and firm fs relocation: A general oligopolistic equilibrium model analysis

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  • Hosaki Sano

    (Graduate School of Economics, Osaka University)

Abstract

This paper presents a multi-sector general oligopolistic equilibrium trade model. We investigate how a country fs labor union structure affects a mobile firm fs location decision. We propose a model in which there is international trade and firm mobility between a partial unionized country and a nonunionized country. When the proportion of unionized sectors is low, the welfares of the two countries are equal; otherwise, the unionized country fs welfare is lower. Compared to the case with no firm mobility, the difference in welfare is larger when the proportion of the unionized sectorsis sufficiently large.

Suggested Citation

  • Hosaki Sano, 2018. "Labor union and firm fs relocation: A general oligopolistic equilibrium model analysis," Discussion Papers in Economics and Business 18-15-Rev., Osaka University, Graduate School of Economics, revised May 2018.
    • Handle: RePEc:osk:wpaper:1815r
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    References listed on IDEAS

    as
    1. Jakob Roland Munch, 2003. "The Location of Firms in Unionized Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 49-72, March.
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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. Hartmut Egger & Michael Koch, 2012. "Labour unions and multi‐product firms in closed and open economies," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1456-1479, November.
    8. 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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    More about this item

    Keywords

    labor union; international trade; general oligopolistic equilibrium;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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