The Welfare Effects of Globalization with Labor Market Regulation
نویسنده
چکیده
The Welfare Effects of Globalization with Labor Market Regulation I examine how globalization affects wages and welfare in a general equilibrium model of international trade with partly oligopolistic markets. Globalization is modeled as reducing trade costs or opening up shielded sectors to trade. There is a national or international common agency that determines minimum wages for the oligopolists, either directly or through supporting labor unions. The lobbies of employers and labor unions influence that agency, relating their prospective political contributions to the latter’s decisions. Both a shift from national to international regulation and a decrease in trade costs promote aggregate welfare, but decrease open-sector relative wages. JEL Classification: C72, F16, J51
منابع مشابه
Globalization and Structural Changes of the International Labor Force and immigration Effective Factors
Alternative theoretical perspectives have been presented to explain internationally effective factors affecting immigration. For example, the orthodox explanation of migration is based on the concept of wage differentials as an important factor of international immigration. The world system approach declines to interpret theoretically international migration as a phenomenon between independent ...
متن کاملPolitical and Economic Transition of People with Disabilities Related to Globalization
This paper analyzes the political and economic issues that people with disabilities face related to globalization; how people with disabilities have been adapting globalization and surviving under worldwide competition system. It explains that economic globalization exacerbates inequality and deprivation of people with disabilities. The rising tide of neo-liberal welfare policies emphasized eff...
متن کاملGlobalization and Risk Averse Workers: The Roles of Labor Market and Trade Policies
This paper studies the implications of globalization for aggregate output and welfare when risk averse workers face the risk of unemployment. The impact of globalization on the welfare of workers and aggregate output depends on the degree of substitutability between domestic workers and imported inputs. When the degree of substitutability is high (low), then globalization reduces (increases) wa...
متن کاملStaffPAPERS FEDERAL RESERVE BANK OF DALLAS The International Product Cycle and Globalization of Production
This paper develops a growth model aimed at understanding the potential effects of globalization of production on rate of innovation, distribution of skilled labor income between the North and South, and welfare of skilled workers in both regions. We adopt a dynamic general equilibrium productcycle model, assuming that the North specializes in innovation and the South specializes in imitation. ...
متن کاملWelfare state, labour market inequalities and health. In a global context: an integrated framework. SESPAS report 2010.
Since the nineteen seventies, high- and low-income countries have undergone a pattern of transnational economic and cultural integration known as globalization. The weight of the available evidence suggests that the effects of globalization on labor markets have increased economic inequality and various forms of economic insecurity that negatively affect workers' health. Research on the relatio...
متن کامل