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    Wage subsidies and international trade: when does policy coordination pay?

    Braun, S. and Spielmann, Christian (2010) Wage subsidies and international trade: when does policy coordination pay? Working Paper. Birkbeck College, University of London, London, UK.

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    National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, a fact widely ignored in the academic literature. This paper studies the effects of wage subsidies in an international duopoly model with unionised labour markets. We 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. Our results suggest that institutional differences could sign responsible for the slow speed at which labour market policy coordination has progressed so far.


    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 1007
    Keyword(s) / Subject(s): Wage subsidies, policy spill-overs, international policy coordination, unionised labour markets, trade, asymmetric labour market institutions
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Administrator
    Date Deposited: 21 Jun 2013 10:08
    Last Modified: 02 Aug 2023 17:05


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