eprintid: 14294
rev_number: 10
eprint_status: archive
userid: 353
dir: disk0/00/01/42/94
datestamp: 2017-01-23 08:29:43
lastmod: 2021-08-27 17:41:48
status_changed: 2017-01-23 08:29:43
type: other
metadata_visibility: show
item_issues_count: 1
creators_name: Palokangas, T.
creators_id: 8295
title: Labor Market Regulation, International Trade and Footloose Capital. IZA SP No. 10468
ispublished: pub
divisions: prog_asa
keywords: international trade, footloose capital, labor market regulation, capital market liberalization
abstract: I examine the effects of globalization in countries where the employed workers support the unemployed and the governments control wages by regulating the workers’ relative bargaining power. I use a general oligopolistic equilibrium model of two integrated countries with two inputs: 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, which decreases wages and welfare even further. The delegation of labor market regulation to an international agent eliminates that distortion, increasing wages and aggregate welfare.
date: 2017-01
date_type: published
publisher: IZA Institute of Labor Economics
official_url: http://legacy.iza.org/en/webcontent/publications/papers/viewAbstract?dp_id=10468
creators_browse_id: 224
full_text_status: public
place_of_pub: Bonn, Germany
coversheets_dirty: FALSE
fp7_project: no
fp7_type: info:eu-repo/semantics/other
citation:   Palokangas, T. <https://pure.iiasa.ac.at/view/iiasa/224.html>  (2017).  Labor Market Regulation, International Trade and Footloose Capital. IZA SP No. 10468.    IZA Institute of Labor Economics , Bonn, Germany.     
document_url: https://pure.iiasa.ac.at/id/eprint/14294/1/dp10468.pdf