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Unionisation, International Integration and Selection

Catia Montagna and Antonella Nocco

No 2011-49, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: We study how unionisation affects competitive selection between heterogeneous fi rms when wage negotiations can occur at the fi rm or at the profi t-centre level. With productivity speci c 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 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).

Keywords: firm selection; unionisation; wage inequality; trade liberalisation (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-bec and nep-lab
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Unionization, international integration, and selection (2013) Downloads
Journal Article: Unionization, international integration, and selection (2013) Downloads
Working Paper: Unionisation, International Integration and Selection (2012) Downloads
Working Paper: Unionisation, International Integration and Selection (2012) Downloads
Working Paper: Unionisation, International Integration and Selection (2012) Downloads
Working Paper: Unionisation, International Integration and Selection (2011) Downloads
Working Paper: Unionisation, International Integration and Selection (2011) Downloads
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