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Journal of Economic Integration 2000 March;15(1) :76-99.
Labor Unions, Unemployment, and Trade and Capital Liberalization
Doris Geide-Stevenson 
Weber State University
Copyright ©2000 Journal of Economic Integration
This paper utilizes a specific factor model where rewards to labor and capital, and employment are determined by efficient bargaining between entrepreneurs and workers in each sector. Union threat points arise endogenously since workers' outside opportunities in one sector depend on the bargain struck in the other sector. This fully unionized economy will generally be characterized by unemployment and inter- industry wage differentials. Both trade and capital liberalization may lead to an increase in overall employment. (JEL Classifications: F10, F15, F20, J51, J64) <
Keywords: Trade unions | Unemployment | Economic integration
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