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The labor market effects of trade unions Layard meets Melitz

Marco de Pinto () and Jochen Michaelis ()
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Marco de Pinto: IAAEU & University of Trier

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Trade unions are typically able to convert their industrial power into political power. We show that, depending on the parameter constellation, stronger trade unions may be welfare-improving in terms of an increase in aggregate employment and output, if they successfully lobby for lower trade barriers set by the government.

Keywords: Trade unions; lobbying; trade liberalization. (search for similar items in EconPapers)
JEL-codes: F13 F16 J51 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2014
New Economics Papers: this item is included in nep-int, nep-lab and nep-pol
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http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/18-2014_depinto.pdf First 201418 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201418

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