Abstract
The standard utility-maximizing model of the trade union in a closed economy is reformulated for an environment where economic integration is under way or expected to occur soon. In the (European) realistic setting of union-dominated labor markets, domestic wages are shown to be affected by labor market developments abroad. This article provides an explanation of the international transmission of inflation and disinflation
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Batavia, B., Nandakumar, P. Economic Integration and Union Power. Open Economies Review 13, 175–182 (2002). https://doi.org/10.1023/A:1013925331572
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DOI: https://doi.org/10.1023/A:1013925331572