Lobbying by Capital and Labor over Trade and Labor Market Policies

摘要: This paper uses the common agency approach to analyze joint determination of product and labor market distortions in a small open economy. Capital owners union members lobby government on both tariffs minimum wages, while other factors production are not organized. The shows that move same direction response changes economic political parameters their level is modified by social pacts between capital labor. It also second best. Hence, conditionality foreign organizations should target markets but markets.