Wage subsidies and international trade: When does policy coordination pay?

Sebastian Braun and Christian Spielmann

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2012, vol. 6, No 2012-30, 42 pages

Abstract: National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggest that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an international duopoly model with unionized labour markets. The authors document both positive and negative spill-over effects and discuss the benefits and costs from international policy coordination both for the case of symmetric and asymmetric labour market institutions. The results suggest that institutional differences could sign responsible for the slow speed at which labour market policy coordination has progressed so far.

Keywords: wage subsidies; policy spill-overs; international policy coordination; unionized labour markets; trade; asymmetric labour market institutions (search for similar items in EconPapers)
JEL-codes: F16 F42 H87 J38 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Wage subsidies and international trade: When does policy coordination pay? (2012)
Working Paper: Wage subsidies and international trade: When does policy coordination pay? (2010)
Working Paper: Wage subsidies and international trade: When does policy coordination pay? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201230

DOI: 10.5018/economics-ejournal.ja.2012-30

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