The bargaining position of low-skilled and high-skilled workers in a globalising world
Michel Dumont,
Glenn Rayp and
Peter Willemé
Labour Economics, 2012, vol. 19, issue 3, 312-319
Abstract:
This paper extends the assessment of the impact of globalisation and technological change on the bargaining power and preferences of employees, by taking worker heterogeneity into account. In contrast with previous studies, two separate unions – representing low-skilled and high-skilled workers respectively – are considered. Using Belgian firm-level data, labour bargaining power and relative wage preference have been estimated by skill level. When these estimates are subsequently regressed on a set of potential determinants, the bargaining power of low-skilled workers appears to fall with imports and offshoring, whereas the bargaining power of high-skilled workers is only positively affected by R&D activities. In addition, a significant effect of globalisation is found on the relative preference of unions for wages over employment, indicating that the effect of globalisation on the behaviour of labour unions is more encompassing than frequently assumed.
Keywords: Union bargaining; Worker heterogeneity; Globalisation; Technological change (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (31)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:19:y:2012:i:3:p:312-319
DOI: 10.1016/j.labeco.2012.02.005
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