Economic Integration and Firm-Union Interaction: The Role of Market Structure

K.C. Fung and Harry Huizinga

Journal of Economic Integration, 1999, vol. 14, 554-571

Abstract:

This paper examines the impact of market integration in the presence of a labor union. Effects on wages, employment, product price, firm profits, and union rents are analyzed. Both the theoretical model as well as numerical sim - ulations show the importance of factors such as the product demand elasticity, the number of firms, the degree of product differentiation, and the nature of competition in the goods market. One surprising result is that union wages and union rents can increase in the presence of market integration.

Keywords: economic integration; labor markets; wages (search for similar items in EconPapers)
JEL-codes: F10 F12 F15 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0117

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