Market Size and Economic Integration When Labor Markets are Unionized

12 Pages Posted: 13 Oct 2003

See all articles by Andromachi Piperakis

Andromachi Piperakis

University of Nottingham - Department of Economics

Robert C. Hine

University of Nottingham - Department of Economics

Peter W Wright

University of Sheffield - Department of Economics

Abstract

The paper explores the effects of economic integration on trade, wages, and welfare when market sizes differ. A duopoly model with two-way intraindustry trade in similar products and with unionized labor markets is employed. It is confirmed that, for a wide range of different relative market sizes, integration leads to higher wages, employment, and welfare. However, where market sizes differ widely, the reduction of trade barriers leads to a reduction of wages, employment, and - in some circumstances - welfare in the country with the large market.

Suggested Citation

Piperakis, Andromachi and Hine, Robert C. and Wright, Peter W, Market Size and Economic Integration When Labor Markets are Unionized. Available at SSRN: https://ssrn.com/abstract=421964

Andromachi Piperakis (Contact Author)

University of Nottingham - Department of Economics ( email )

University Park
Nottingham, NG8 1BB
United Kingdom
(0)1159 515471 (Phone)
(0)1159 514159 (Fax)

Robert C. Hine

University of Nottingham - Department of Economics ( email )

University Park
Nottingham, NG8 1BB
United Kingdom
+1159 515471 (Phone)
+1159 514159 (Fax)

Peter W Wright

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

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