Trade Unions in an Open Economy: A General Equilibrium Analysis

This paper derives a general equilibrium demand‐for‐labour schedule within the Heckscher‐Ohlin‐Samuelson model of a large open economy, and then introduces an economy‐wide labour union that maximizes its utility subject to this demand schedule, thereby determining the real wage and hence total employment A parametric shift's comparative‐static effects on the equilibrium levels of unemployment and welfare are analyzed within this fully unionized economy. Copyrigh