Montagna, Catia

Nocco, Antonella

English

We study how unionization 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 liberalization 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)

University of Dundee Online Publications

Dundee Discussion Papers in Economics 257:Unionization, international integration, and selection

http://discovery.dundee.ac.uk/portal/files/2103172/DDPE_257.pdf

Dundee Discussion Papers in Economics 257:Unionization, international integration, and selection

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University of Dundee Online Publications

University of Dundee Online Publications