Labour market power and the distorting effects of international trade / Matthias Mertens
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Labour market power and the distorting effects of international trade
Discovery
1047459515
URN
urn:nbn:de:gbv:3:2-101989
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), Member of the Leibniz Association, [28. Januar 2019]
Content
1 Online-Ressource (III, 64 Seiten, 1,48 MB) : Diagramme
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Language
eng
Comment
Abstract
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 labor market distortions in monetary terms and document large degrees of those distortions in Germany's manufacturing sector. Import competition can only exert labor 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.
Series
IWH-CompNet discussion papers ; 2019, no. 2 (January 2019) ppn:887996302