We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
How unilateral tariffs harm workers under oligopoly.
- Authors
Rudsinske, Jonas F.
- Abstract
I study import tariffs in an asymmetric general oligopolistic equilibrium trade model. Their anti‐competitive effect reduces labour demand because firms want to shorten supply. Unilaterally increasing the import tariff raises domestic welfare at the foreign country's expense, but comes at the cost of favouring profit recipients as compared to workers, whose real wages fall. Only if initial tariffs are low, the tariff‐increasing government could use its rising tariff revenue to neutralise the distributional effect or the negative effect on workers. If supporting workers is the policy objective, tariffs do not appear to be a suitable tool under oligopoly.
- Subjects
REAL wages; TARIFF; OLIGOPOLIES; LABOR supply; COMMERCIAL policy
- Publication
World Economy, 2023, Vol 46, Issue 9, p2732
- ISSN
0378-5920
- Publication type
Article
- DOI
10.1111/twec.13466