Labour Market Imperfections, International Integration and Selection

Catia Montagna and Antonella Nocco

No 2008-21, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: Although a large body of literature has focused on the effects of intra-firm differences on export performance, relatively little attention has been devoted to the interaction between firms' selection and international performance and labour market institutions - in contrast with the centrality of the latter to current policy and public debates on the implications of economic globalisation for national policies and institutions. In this paper, we study the effects of labour market unionisation on the process of competitive selection between heterogeneous firms and analyse how the interaction between the two is affected by trade liberalisation between countries with different unionisation patterns.

Keywords: firm selection; labour market unionisation; gains from trade (search for similar items in EconPapers)
Date: 2008
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