Wage bargaining and multinational firms

• 成果类型: Article
• 署名作者: Eckel, Carsten; Egger, Hartmut
• 署名单位: University of Bayreuth; Otto Friedrich University Bamberg
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2009.01.004
• 发表日期: 2009
• 页码: 206-214
• 关键词: multinational firms; Economic integration; Wage bargaining; unemployment

摘要

We set up a general equilibrium model with heterogeneous firms to study the interaction between wage bargaining and foreign direct investment Thereby, we highlight the incentives of firms to invest abroad in order to improve their bargaining position vis-A-vis local unions and we show how changes in the bargaining power of unions affect the share of multinational firms in an open economy. In addition, taking into account this relationship between wage bargaining and foreign direct investment, our analysis provides novel insights on how labor income and the unemployment rate adjust to economic integration and how changes in the bargaining power of unions affect these two labor market variables. (C) 2009 Elsevier B.V. All rights reserved.