Abstract
In this paper we discuss the trade liberalization effects on employment and wages in two symmetrical unionized countries. Two firms which produce differentiated goods compete in Cournot. The employment-wage equilibrium results from efficient bargaining between firm and union. We find that trade liberalization increases employment and has no effect on wages as long as the two markets tend towards perfect integration.
JEL codes
- C62: Existence and Stability Conditions of Equilibrium
- D43: Oligopoly and Other Forms of Market Imperfection
- F15: Economic Integration
- F16: Trade and Labor Market Interactions
- J51: Trade Unions: Objectives, Structure, and Effects
- L13: Oligopoly and Other Imperfect Markets
Reference
Mamadou Thiam, “Integrated markets and efficient bargaining”, Revue Économique, vol. 74, n. 2, 2023, pp. 83–94.
Published in
Revue Économique, vol. 74, n. 2, 2023, pp. 83–94