Trade Unions in an Open Economy: A General Equilibrium Analysis

Richard Brecher and Ngo Long

The Economic Record, 1989, vol. 65, issue 3, 234-239

Abstract: This paper derives a general equilibrium demand‐for‐labour schedule within the Heckscher‐Ohlin‐Samuelson model of a large open economy, and then introduces an economy‐wide labour union that maximizes its utility subject to this demand schedule, thereby determining the real wage and hence total employment A parametric shift's comparative‐static effects on the equilibrium levels of unemployment and welfare are analyzed within this fully unionized economy.

Date: 1989
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