Product Market Integration and Wages in Unionized Countries
构建两国一般均衡模型,研究产品市场一体化对工会化国家工资的影响,发现固定贸易成本下降明确降低工资,而可变贸易成本下降对工资影响不确定。
This paper addresses the effects of product market integration on wages. We develop a two–country general equilibrium model of international trade with imperfectly competitive product markets and unionized labor markets. Integration is modelled as either a fall in fixed or variable trade costs. A reduction in fixed trade costs leads to an unambiguous decrease in wages, whereas a reduction in variable trade costs has an ambiguous effect on wages.