Do capital market and trade liberalization trigger labor market deregulation?

• 成果类型: Article
• 署名作者: Boulhol, Herve
• 署名单位: heSam Universite; Universite Pantheon-Sorbonne
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2008.12.001
• 发表日期: 2009
• 页码: 223-233
• 关键词: deregulation; Wage bargaining; capital mobility; agglomeration; Relocations

摘要

Over the past decades, product market deregulation has typically preceded labor market reforms in OECD countries. Ibis paper incorporates labor market rigidities in a model of footloose capital in order to study how globalization might affect the trade-offs generated by labor market regulation and put pressure on labor market institutions. In this two-sector model, globalization ultimately reduces labor market rigidities through either one of two channels: capital mobility triggers a re-allocation of resources, which trade integration amplifies, away from the high-rent / highly-unionized sector; the threat of costly relocations encourages labor market deregulation, The latter channel is more efficient because it avoids sub-optimal sectoral specialization. (C) 2009 Elsevier B.V. All rights reserved.