Flexibility in Wage Setting Under the Threat of Relocation

verfasst von

Anna Goeddeke, Justus Haucap, Annika Herr, Christian Wey

Abstract

Relocation of production to countries with low labour costs has induced increased labour market flexibility, which has been praised as a silver bullet for economic growth and low unemployment. Within a unionised oligopoly framework, in which a multinational firm has the option to relocate its production to a foreign country, we analyse the welfare implications of both centralised and flexible wage-setting regimes. For very low foreign wages, wage flexibility leads to higher welfare than a rigid centralised regime. In contrast, for ‘intermediate’ wage levels in the foreign country, an industry-wide uniform wage leads to higher social welfare than flexible wages.

Externe Organisation(en)

Hochschule Reutlingen
Universitätsklinikum Düsseldorf

Typ

Artikel

Journal

Labour : review of labour economics and industrial relations

Band

32

Seiten

1-22

Anzahl der Seiten

22

ISSN

1121-7081

Publikationsdatum

03.2018

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Demographie, Geografie, Planung und Entwicklung

Ziele für nachhaltige Entwicklung

SDG 8 – Anständige Arbeitsbedingungen und wirtschaftliches Wachstum

Elektronische Version(en)

https://doi.org/10.1111/labr.12118 (Zugang: Offen)