Unionization, international integration, and selection

Catia Montagna, Antonella Nocco

    Research output: Working paperDiscussion paper

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    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
    PublisherUniversity of Dundee
    Pages1-39
    Number of pages39
    Publication statusPublished - Jun 2011

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.257
    ISSN (Print)1473-236X

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  • Research Output

    Unionization, international integration, and selection

    Montagna, C. & Nocco, A., Feb 2013, In : Canadian Journal of Economics. 46, 1, p. 23-45 23 p.

    Research output: Contribution to journalArticle

  • 11 Citations (Scopus)

    Cite this

    Montagna, C., & Nocco, A. (2011). Unionization, international integration, and selection. (pp. 1-39). (Dundee Discussion Papers in Economics; No. 257). University of Dundee.