Using the labor union's bargaining power as an indication of government policy on labor standards issues, we analyze the competition between a domestic (North) firm and a foreign (South) firm, and their relationship with optimal labor standards (LS). First, we show that the optimal level of LS...

In developing countries, empirical evidence suggests that labor unions entail a positive wage gap for unionized workers, in particular in monopolistic and publicly controlled firms. In this paper, we analyze how the presence of a labor union affects the regulation of a monopoly under asymmetric...

This paper analyzes foreign-direct-investment (FDI) competition in a three-country framework: two Northern countries and one Southern country. We have in mind the competition of Airbus and Boeing (or GM and Volkswagen) in a developing country. The host-country government endogeneizes tariffs,...

Labor unions are the organization which by definition have function of only struggling to secure benefits for their members, such as financial gains like rise of wages, bonuses, various allowances insurance benefits, overtime payment and non financial bene fits such as job security, comfortable...

Using a money-in-the-utility-function model, we present long-run stagnation where insatiable demand for money secularly causes deficient aggregate demand and thereby unemployment in the presence of nominal wage stickiness attributable to union wage setting. In this long-run stagnation, generous...

While corporate political connections are known to enhance equity values, we demonstrate that union political activity can have the opposite effect. We examine the consequences of a recent Australian state law that restricts union political activity, but does not change collective bargaining...

In this paper, we examine the impact of the labor regulation on firm's employment. South Korea's labor reform in 2007 restricted the duration of the specific types of temporary contract — fixed term and dispatched contract — to maximum two years and required those temporary contracts to be...