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-Rev., 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. We investigate how a country fs labor union structure affects a mobile firm fs location decision. We propose a model in which there is international trade and firm mobility between a partial unionized country and a nonunionized country. When the proportion of unionized sectors is low, the welfares of the two countries are equal; otherwise, the unionized country fs welfare is lower. Compared to the case with no firm mobility, the difference in welfare is larger when the proportion of the unionized sectorsis sufficiently large.

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: 11 pages
Date: 2018-05, Revised 2018-05
New Economics Papers: this item is included in nep-int
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