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Economic Integration and Firm-Union Interaction : The Role of Market Structure
Fung, K. C.,Huizinga, Harry 세종대학교 국제경제연구소 1999 Journal of Economic Integration Vol.14 No.4
This paper examines the impact of market integration in the presence of a labor union. Effects on wages, employment, product price, firm profits, and union rents are analyzed. Both the theoretical model as well as numerical simulations show the importance of factors such as the product demand elasticity, the number of firms, the degree of product differentiation, and the nature of competition in the goods market. One surprising result is that union wages and union rents can increase in the presence of market integration. (JFL Classifications: F10, F12, F15)