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Trade Unions in an Open Economy: A General Equilibrium Analysis *
Author(s) -
BRECHER RICHARD A.,
LONG NGO VAN
Publication year - 1989
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1989.tb00932.x
Subject(s) - economics , unemployment , general equilibrium theory , schedule , wage bargaining , open economy , welfare , comparative statics , wage , small open economy , applied general equilibrium , labour economics , microeconomics , economy , macroeconomics , market economy , monetary policy , management , exchange rate
This paper derives a general equilibrium demand‐for‐labour schedule within the Heckscher‐Ohlin‐Samuelson model of a large open economy, and then introduces an economy‐wide labour union that maximizes its utility subject to this demand schedule, thereby determining the real wage and hence total employment A parametric shift's comparative‐static effects on the equilibrium levels of unemployment and welfare are analyzed within this fully unionized economy.