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Institut für Weltwirtschaft (IfW), Kiel >
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http://hdl.handle.net/10419/46927
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| Title: | | Wage competition with international capital mobility  |
| Authors: | | Lorz, Jens Oliver |
| Issue Date: | | 1997 |
| Series/Report no.: | | Kiel Working Papers 799 |
| Abstract: | | This paper analyzes wage competition between national trade unions caused by the international mobility of capital. Perfect capital mobility leads to a Bertrand result for the outcome of wage competition: A pure strategy equilibrium implies full employment in all countries. It is shown that such an equilibrium exists for a sufficiently large number of countries. As extensions of the basic model, decreasing returns to scale and capital adjustment costs are introduced. |
| Subjects: | | capital mobility trade unions |
| JEL: | | F2 J5 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW
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