Dynamic Labor Standards Under International Oligopoly

摘要: This paper models productive labor standards (LS) in a two-stage, two-period model of international oligopoly, where governments choose subsidies on LS and output first, oligopolistic firms determine production later. We show that the optimal production, are all positive. While second-period subsidy is equal to static one, higher than one. And with inter-temporal spillovers, more effective output. If home government cares about (or human rights) foreign country, then it better not provide subsidies, because such reduce LS. JEL Classification Number: F12, F16, L13