Oligopoly: open shop unions and trade liberalisation
Bastos, Paulo ; Kreickemeier, Udo ; Wright, Peter W.
University of Nottingham. The Leverhulme Centre for Research on Globalisation and Economic Policy
University of Nottingham - Nottingham
2007
30 p.
collective bargaining ; trade liberalization ; trade union role ; wages
Research Paper
30
Trade
English
Bibliogr.
"In an international oligopoly model, we investigate how trade liberalisation impacts on collective bargaining outcomes when workers are represented by open shop unions. We find that, with intermediate levels of union density, trade liberalisation may lead to higher negotiated wages even if no trade occurs in equilibrium. In addition, we show that union wages may be higher with free trade than in autarky."
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