Unionization, international integration, and selection

Catia Montagna and Antonella Nocco

Canadian Journal of Economics, 2013, vol. 46, issue 1, 23-45

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).

JEL-codes: F12 F16 J51 R13 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (21)

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Related works:
Working Paper: Unionisation, International Integration and Selection (2012)
Working Paper: Unionisation, International Integration and Selection (2012)
Working Paper: Unionisation, International Integration and Selection (2012)
Working Paper: Unionisation, International Integration and Selection (2011)
Working Paper: Unionisation, International Integration and Selection (2011)
Working Paper: Unionisation, International Integration and Selection (2011)
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