Labor union and firm fs relocation: A general oligopolistic equilibrium model analysis

Hosaki Sano ()
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Hosaki Sano: Graduate School of Economics, Osaka University

No 18-15, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper presents a multi-sector general oligopolistic equilibrium trade model in which unionized and nonunionized sectors interact. We investigate how a country fs labor union structure affects firm fs relocation. Firstly, we analyze the case of international trade between unionized country and non-unionized country. As a result, non-unionized country should lower the unemployment benefit to attract firms. Secondly, we analyze the case of international trade between partial unionized country and non-unionized country. When the proportion of unionized sector is low, welfares of countries are equal, otherwise, unionized country fs welfare is lower than non-unionized. Comparing non relocation case, difference of welfare is larger.

Keywords: labor union; international trade; general oligopolistic equilibrium (search for similar items in EconPapers)
JEL-codes: F15 F16 L13 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2018-05
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1815

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