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Unionisation, International Integration and Selection

Catia Montagna and Antonella Nocco

No 257, Dundee Discussion Papers in Economics from Economic Studies, University of Dundee

Abstract: We study how unionisation 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 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)
JEL-codes: F12 F16 J51 R13 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-06
New Economics Papers: this item is included in nep-bec, nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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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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