Wage Bargaining, Vertical Differentiation and Intra-Industry Trade Liberalization

Emanuele Bacchiega

Recherches économiques de Louvain, 2013, vol. 79, issue 1, 35-57

Abstract: This article appraises the effects of trade liberalization between two industries that have different endowments of skilled labor. Skilled labor is necessary for the production of higher-quality variants of a vertically differentiated good. Skilled labor endowments, therefore, determine the patternof specialization of industries as well as their market structure, both in the final goods market and in the labor market. We analyze how market integration benefits or harms the agents in the industries by delving into the linkages between labor and product markets, and show that bilateral losses from trade can emerge at equilibrium. JEL Classification: L13, J51, F16.

Keywords: vertical differentiation; wage bargaining; trade liberalization (search for similar items in EconPapers)
JEL-codes: F16 J51 L13 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_791_0035 (application/pdf)
http://www.cairn.info/revue-recherches-economiques-de-louvain-2013-1-page-35.htm (text/html)
free

Related works:
Working Paper: Wage Bargaining, Vertical Differentiation and Intra-Industry Trade Liberalization (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:reldbu:rel_791_0035

Access Statistics for this article

More articles in Recherches économiques de Louvain from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().