A Note on the Effect of Outsourcing on Union Wages

Sebastian Braun and Juliane Scheffel ()

SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649

Abstract: We analyze the effect of outsourcing on union wages in a simple two-stage game between a firm and a union. In contrast to public perception the ease with which the firm can outsource parts of their production does not necessarily reduce the wage set by the union. Even in the simple model framework a surprisingly large number of conflicting effects is established.

Keywords: Collective Bargaining; International Outsourcing; Union Wages (search for similar items in EconPapers)
JEL-codes: F16 J51 L24 (search for similar items in EconPapers)
Pages: 7
Date: 2007-05
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