Unionisation, International Integration and Selection

Catia Montagna and Antonella Nocco

No 2012-35, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: We study how unionisation affects competitive selection between heterogeneous firms when wage negotiations can occur at the rm or at the pro t-centre level. With productivity specifi 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 liberali- sation (search for similar items in EconPapers)
Date: 2012
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Related works:
Journal Article: Unionization, international integration, and selection (2013)
Journal Article: Unionization, international integration, and selection (2013)
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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Persistent link: https://EconPapers.repec.org/RePEc:edn:sirdps:401

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