Bastos, Paulo; Kreickemeier, Udo; Wright, Peter - Leverhulme Centre for Research on Globalisation and …
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 …