@article{GoeddekeHaucapHerretal.2018,
  author    = {Goeddeke, Anna and Haucap, Justus and Herr, Annika and Wey, Christian},
  title     = {Flexibility in wage setting under the threat of relocation},
  journal   = {Labour : review of labour economics and industrial relations},
  volume    = {32},
  number    = {1},
  issn      = {1121-7081},
  doi       = {10.1111/labr.12118},
  institution = {ESB Business School},
  pages     = {1 -- 22},
  year      = {2018},
  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.},
  language  = {en}
}