Unionisation, international integration and selection
Montagna, Catia ; Nocco, Antonella
University of Nottingham. The Leverhulme Centre for Research on Globalisation and Economic Policy
University of Nottingham - Nottingham
2012
24 p.
collective bargaining ; enterprise level ; trade unionization ; wages ; trade union power
Research paper
7
Trade unionism
English
Bibliogr.
"We study how unionisation affects competitive selection between heterogeneous firms when wage negotiations can occur at the firm or at the profit-centre level. With productivity specific wages, an increase in union power has: (i) a selection-softening; (ii) a countercompetitive; (iii) a wage-inequality; and (iv) a variety effect. In a two-country asymmetric setting, stronger unions soften competition for domestic firms and toughen it for exporters. With profit-centre bargaining, we show how trade liberalisation can affect wage inequality among identical workers both across firms (via its effects on competitive selection) and within firms (via wage discrimination across destination markets)."
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