Imperfect Goods and Labor Markets, Regulation, and Spillover Effects

Helge Sanner

No 56, Volkswirtschaftliche Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: (De)regulatory interventions frequently have unintended cross- market effects, which may or may not be desirable. We assess the effects of three policies on aggregate variables, in particular real income, from a theoretical perspective. Our results suggest that instruments acting upon wages have only a weak impact on real income, whereas the distribution of income is affected strongly. In contrast, a policy that enhances product market competition is fostering real income, but also impacts strongly on union wages and the distribution of income.

Keywords: Monopolistic competition; Dual labor market; Wage bargaining; Cross- market effects; Regulation (search for similar items in EconPapers)
JEL-codes: D43 D58 J51 L51 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pot:vwldis:56

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