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Trade, wages, and collective bargaining: evidence from France

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Carluccio, Juan ; Fougère, Denis ; Gautier, Erwan

Institute of Labor Economics, Bonn

IZA - Bonn

2015

50 p.

collective bargaining ; international relocation of industry ; trade ; wages

France

Discussion Paper

8894

Wages and wage payment systems

http://www.iza.org/

English

Bibliogr.

"We estimate the impact of international trade on wages using data for French manufacturing firms. We instrument firm-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has heterogeneous effects. The impact of trade on wages varies across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains associated with collective bargaining are similar across worker categories. Keywords: exports, offshoring, firm-level wages, collective bargaining."

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