Unionization, international integration, and selection

Catia Montagna, Antonella Nocco

    Research output: Contribution to journalArticle

    11 Citations (Scopus)

    Abstract

    We study how unionization 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 counter-competitive; (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 liberalization 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).
    Original languageEnglish
    Pages (from-to)23-45
    Number of pages23
    JournalCanadian Journal of Economics
    Volume46
    Issue number1
    DOIs
    Publication statusPublished - Feb 2013

    Keywords

    • UNEMPLOYMENT
    • F12
    • UNIONS
    • TRADE LIBERALIZATION
    • J51
    • R13
    • HETEROGENEITY
    • F16
    • MARKET
    • JOBS
    • WAGE INEQUALITY
    • PRODUCTIVITY
    • COMPETITION

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  • Research Output

    • 11 Citations
    • 1 Discussion paper

    Unionization, international integration, and selection

    Montagna, C. & Nocco, A., Jun 2011, University of Dundee, p. 1-39, 39 p. (Dundee Discussion Papers in Economics; no. 257).

    Research output: Working paperDiscussion paper

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