Monopoly Unions and the Liberalisation of International Trade

Edward Driffill () and Frederick (Rick) van der Ploeg

Economic Journal, 1993, vol. 103, issue 417, 379-85

Abstract: The authors examine the effects of removing tariffs and trade barriers on the behavior of utilitarian trade unio ns using a two-country macroeconomic model. A "hump-shaped" relationshi p between wages and the degree of corporatism emerges here, analogousl y with closed-economy models. The completion of the internal market is shown to bid product wages down and boost employment, to raise consumption wages, and unambiguously to raise welfare. The removal o f trade barriers makes unions more likely to want to cooperate with unions abroad. Copyright 1993 by Royal Economic Society.

Date: 1993
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