Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30255
Authors: 
Braun, Sebastian
Spielmann, Christian
Year of Publication: 
2010
Series/Report no.: 
Kiel Working Paper 1599
Abstract: 
National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, a fact widely ignored in the academic literature. This paper studies the effects of wage subsidies in an international duopoly model with unionised labour markets. We document both positive and negative spill-over effects and discuss the benefits and costs from international policy coordination both for the case of symmetric and asymmetric labour market institutions. Our results suggest that institutional differences could sign responsible for the slow speed at which labour market policy coordination has progressed so far.
Subjects: 
Trade Wage subsidies
policy spill-overs
international policy coordination
unionised labour markets
trade
asymmetric labour market institutions
JEL: 
F16
F42
J38
H87
Document Type: 
Working Paper

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