Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35349
Authors: 
Palokangas, Tapio
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4096
Abstract: 
This paper examines an economic union where oligopolistic firms produce by skilled and unskilled labor and do in-house R&D by skilled labor. The planner of the union accepts new members to the union, regulates the labor market through a minimum wage for unskilled labor and supports firms by taxation. Firms and workers lobby the planner for prospective policy. It is shown that in the political equilibrium small unions regulate the labor market but do not support firms, while large unions deregulate the labor market and support firms.
Subjects: 
Economic integration
minimum wage
market power
endogenous technological change
JEL: 
F15
J50
O40
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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