?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F14294%2F&rft.title=Labor+Market+Regulation%2C+International+Trade+and+Footloose+Capital.+IZA+SP+No.+10468&rft.creator=Palokangas%2C+T.&rft.description=I+examine+the+effects+of+globalization+in+countries+where+the+employed+workers+support+the+unemployed+and+the+governments+control+wages+by+regulating+the+workers%E2%80%99+relative+bargaining+power.+I+use+a+general+oligopolistic+equilibrium+model+of+two+integrated+countries+with+two+inputs%3A+labor+and+potentially+footloose+capital.+National+competition+for+jobs+by+labor+market+deregulation+creates+a+distortion+with+suboptimal+wages.+The+mobility+of+capital+aggravates+that+distortion+by+increasing+the+wage+elasticity+of+labor+demand%2C+which+decreases+wages+and+welfare+even+further.+The+delegation+of+labor+market+regulation+to+an+international+agent+eliminates+that+distortion%2C+increasing+wages+and+aggregate+welfare.&rft.publisher=IZA+Institute+of+Labor+Economics&rft.date=2017-01&rft.type=Other&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.rights=cc_by_nc&rft.identifier=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F14294%2F1%2Fdp10468.pdf&rft.identifier=++Palokangas%2C+T.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F224.html%3E++(2017).++Labor+Market+Regulation%2C+International+Trade+and+Footloose+Capital.+IZA+SP+No.+10468.++++IZA+Institute+of+Labor+Economics+%2C+Bonn%2C+Germany.+++++&rft.relation=http%3A%2F%2Flegacy.iza.org%2Fen%2Fwebcontent%2Fpublications%2Fpapers%2FviewAbstract%3Fdp_id%3D10468