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SCOPUS 학술저널

Labor Unions, Unemployment, and Trade and Capital Liberalization

Labor Unions, Unemployment, and Trade and Capital Liberalization

This paper utilizes a specific factor model where rewards to labor and capital, and employment are determined by efficient bargaining between entrepreneurs and workers in each sector. Union threat points arise endogenously since workers` outside opportunities in one sector depend on the bargain struck in the other sector. This fully unionized economy will generally be characterized by unemployment and inter- industry wage differentials. Both trade and capital liberalization may lead to an increase in overall employment. (JEL Classifications: F10, F15, F20, J51, J64)

Ⅰ. Introduction

Ⅱ. Model

Ⅲ. Short-run Equilibrium

Ⅳ. Long-run Equilibrium

Ⅴ. Liberalizing Capital Mobility

Ⅵ. Numerical Examples

Ⅶ. Conclusion

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