[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/799.html
   My bibliography  Save this paper

Wage competition with international capital mobility

Author

Listed:
  • Lorz, Jens Oliver
Abstract
This paper analyzes wage competition between national trade unions caused by the international mobility of capital. Perfect capital mobility leads to a Bertrand result for the outcome of wage competition: A pure strategy equilibrium implies full employment in all countries. It is shown that such an equilibrium exists for a sufficiently large number of countries. As extensions of the basic model, decreasing returns to scale and capital adjustment costs are introduced.

Suggested Citation

  • Lorz, Jens Oliver, 1997. "Wage competition with international capital mobility," Kiel Working Papers 799, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:799
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/46927/1/257952926.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
    2. repec:bla:scandj:v:87:y:1985:i:2:p:160-93 is not listed on IDEAS
    3. Oswald, Andrew J, 1979. "Wage Determination in an Economy with Many Trade Unions," Oxford Economic Papers, Oxford University Press, vol. 31(3), pages 369-385, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oliver Lorz & Frank Stähler, 2001. "Who is afraid of capital mobility? on taxation of labor income and the level of public services in an open economy," Journal of Economics, Springer, vol. 74(1), pages 79-101, February.
    2. Falusné Szikra, Katalin, 2000. "Külföldi beruházás belföldi munkahely. A külföldi közvetlen beruházások hatása a foglalkoztatásra és a bérekre [Foreign investment and domestic jobs. The effect of foreign direct investment on empl," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 446-458.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kuhn, Peter & Gu, Wulong, 1998. "Centralization and strikes," Labour Economics, Elsevier, vol. 5(3), pages 243-265, September.
    2. Ana Paula Martins & Rui Coimbra, 2004. "Efficient Union Contracts in the Presence of Homogeneous Labor and Differentiated Unions," Annals of Economics and Finance, Society for AEF, vol. 5(1), pages 27-46, May.
    3. Stennek, Johan & Tangerås, Thomas, 2006. "Competition vs. Regulation in Mobile Telecommunications," Working Paper Series 685, Research Institute of Industrial Economics.
    4. Domenico Buccella & Luciano Fanti, 2022. "Downstream competition and profits under different input price bargaining structures," Journal of Economics, Springer, vol. 136(3), pages 251-268, August.
    5. Björnerstedt, Jonas & Stennek, Johan, 2001. "Bilateral Oligopoly," Working Paper Series 555, Research Institute of Industrial Economics.
    6. Ana Paula Martins, 2009. "Union duopoly with heterogeneous labor: the effect of minimum wage regulation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(5), pages 580-607, April.
    7. Drakopoulos, Stavros A., 2008. "The Concept Of Comparison Income: An Historical Perspective," MPRA Paper 8713, University Library of Munich, Germany.
    8. Gaetano D’Adamo, 2014. "Wage spillovers across sectors in Eastern Europe," Empirical Economics, Springer, vol. 47(2), pages 523-552, September.
    9. Mauleon, Ana & Vannetelbosch, Vincent J., 2003. "Market competition and strike activity," International Journal of Industrial Organization, Elsevier, vol. 21(5), pages 737-758, May.
    10. Luciano Fanti & Nicola Meccheri, 2017. "Unionization Regimes, Capacity Choice by Firms and Welfare Outcomes," Manchester School, University of Manchester, vol. 85(6), pages 661-681, December.
    11. Pankaj C. Patel & Cornelius A. Rietveld, 2023. "Right of association and new business entry: country-level evidence from the market sector," Small Business Economics, Springer, vol. 61(3), pages 1161-1177, October.
    12. Nadine Riedel, 2011. "Taxing multi-nationals under union wage bargaining," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 399-421, August.
    13. Kuang-Feng Cheng & Chien-Shu Tsai & Chu-Chuan Hsu & Szu-Chung Lin & Ting-Chung Tsai & Jen-Yao Lee, 2019. "Emission Tax and Compensation Subsidy with Cross-Industry Pollution," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    14. Ismail Saglam, 2023. "Centralized bargaining with pre‐donation in a vertically related industry," Manchester School, University of Manchester, vol. 91(3), pages 233-259, June.
    15. López, Mónica Correa & Nayor, Robin A., 2002. "The Cournot-Bertrand Profit Differential : A Reversal Result In A Differentiated Duopoly With Wage Bargaining," The Warwick Economics Research Paper Series (TWERPS) 631, University of Warwick, Department of Economics.
    16. Goerke, Laszlo & Neugart, Michael, 2017. "Social comparisons in oligopsony," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 196-209.
    17. Noriaki Matsushima & Laixun Zhao, 2018. "Market expansion may harm the supplier in a bilateral monopoly," ISER Discussion Paper 1040, Institute of Social and Economic Research, Osaka University.
    18. Barcena-Ruiz, Juan Carlos, 2003. "Politically preferred wage bargaining structures," European Journal of Political Economy, Elsevier, vol. 19(2), pages 341-353, June.
    19. Milliou, Chrysovalantou & Petrakis, Emmanuel, 2007. "Upstream horizontal mergers, vertical contracts, and bargaining," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 963-987, October.
    20. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative consumption, working time, and trade unions," Labour Economics, Elsevier, vol. 24(C), pages 170-179.

    More about this item

    Keywords

    capital mobility; trade unions;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:799. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.