Oligopoly, open shop unions and trade liberalisation

In an international duopoly 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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Year of publication:	2009
Authors:	Bastos, Paulo ; Kreickemeier, Udo ; Wright, Peter
Published in:	International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 27.2009, 6, p. 679-686
Publisher:	Elsevier
Keywords:	Bargaining Open shop trade unions Trade liberalisation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008483538