Labour market power and the distorting effects of international trade / Matthias Mertens
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Discovery
1032223022
URN
urn:nbn:de:gbv:3:2-97170
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [04. Oktober 2018]
Umfang
1 Online-Ressource (III, 63 Seiten, 1,56 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
This article examines how trade shocks shape labour market imperfections that create market power in labour markets and prevent an efficient allocation of labour. I develop a framework for measuring such labour market distortions in monetary terms and document large degrees of those distortions in Germany’s manufacturing sector. Import competition can only exert labour market disciplining effects when firms rather than workers have labour market power. Otherwise, export demand and import competition shocks tend to fortify existing distortions by amplifying labour market power structures. This diminishes the gains from trade compared to a model with perfectly competitive labour markets.
Schriftenreihe
IWH-Diskussionspapiere ; 2018, no. 18 (October 2018) ppn:837399270