Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55261 
Year of Publication: 
2012
Series/Report no.: 
Economics Discussion Papers No. 2012-9
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggests that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an international duopoly model with unionised labour markets. The authors 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. The results suggest that institutional differences could sign responsible for the slow speed at which labour market policy coordination has progressed so far.
Subjects: 
wage subsidies
policy spill-overs
international policy coordination
unionised labour markets
trade
asymmetric labour market institutions
JEL: 
F16
F42
J38
H87
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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