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Market integration and strike activity

Ana Mauleon and Vincent Vannetelbosch

Journal of International Economics, 2010, vol. 81, issue 1, 154-161

Abstract: We consider a two-country model of wage determination with private information in unionized, imperfectly competitive, industries. We investigate the effects of opening up markets to trade as well as of further market integration on the negotiated wage and the maximum delay in reaching an agreement. From an initial situation of two-way intra-industry trade, an increase in product market integration decreases the maximum delay in reaching an agreement. However, opening up markets to trade has an ambiguous effect on both the wage outcome and the maximum real delay time.

Keywords: Intra-industry; trade; Economic; integration; Product; market (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Working Paper: Market integration and strike activity (2010)
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