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Market integration and strike activity

Author

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  • MAULEON, Ana
  • VANNETELBOSCH, Vincent
Abstract
We consider a two-country model of wage determination with private information in unionized, imperfectly competitive, industries. We investigate the effects of opening up markets to trade as well as of further market integration on the negotiated wage and the maximum delay in reaching an agreement. From an initial situation of two-way intra-industry trade, an increase in product market integration decreases the maximum delay in reaching an agreement. However, opening up markets to trade has an ambiguous effect on both the wage outcome and the maximum real delay time.
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Suggested Citation

  • MAULEON, Ana & VANNETELBOSCH, Vincent, 2010. "Market integration and strike activity," LIDAM Reprints CORE 2201, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2201
    DOI: 10.1016/j.jinteco.2009.12.003
    Note: In : Journal of International Economics, 81(1), 154-161, 2010
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    as
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    Cited by:

    1. M Parameswaran, 2021. "Trade Openness and Labour Market Unrest: Evidence from Indian Manufacturing Industry," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 345-373, June.
    2. A. Mauleon & Vincent Vannetelbosch & Cecilia Vergari, 2014. "Unions' Relative Concerns And Strikes In Wage Bargaining," Bulletin of Economic Research, Wiley Blackwell, vol. 66(4), pages 374-383, October.

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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