TY  - JOUR
U1  - Zeitschriftenartikel, wissenschaftlich - begutachtet (reviewed)
A1  - Goeddeke, Anna
A1  - Haucap, Justus
A1  - Herr, Annika
A1  - Wey, Christian
T1  - Flexibility in wage setting under the threat of relocation
JF  - Labour : review of labour economics and industrial relations
N2  - 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.
Y1  - 2018
SN  - 1121-7081
SS  - 1121-7081
U6  - https://doi.org/10.1111/labr.12118
DO  - https://doi.org/10.1111/labr.12118
VL  - 32
IS  - 1
SP  - 1
EP  - 22
S1  - 22
PB  - Wiley
CY  - Oxford
ER  -