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Does trade liberalization always decrease union bargaining power?

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Author Info
Jorge Saba Arbache (UnB)

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Abstract

The theoretical and empirical literature shows that union wages are more responsive to international import competition than nonunion wages, thus reducing unions bargaining power. In this paper we track the influence of unions on wages in Brazil before and after the trade liberalization in the beginning of the 1990s. We find that union bargaining power increased rather that decreased after economic openness. Our results seem to be related to the bargaining framework prevailing in the Brazilian labor market.

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File URL: http://www.anpec.org.br/revista/vol5/vol5n1p99_121.pdf
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Article provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its journal Economia.

Volume (Year): 5 (2004)
Issue (Month): 1 (January-June)
Pages: 99-121
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Handle: RePEc:anp:econom:v:5:y:2004:i:1:p:99-121

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Related research
Keywords: Union trade liberalization wage structure wage dispersion Brazil

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

Cited by:
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  1. Andy Dickerson & Francis Green & Jorge Saba Arbache, 2001. "Trade Liberalization and the Returns to Education: A Pseudo-panel Approach," Studies in Economics 0114, Department of Economics, University of Kent. [Downloadable!]
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This page was last updated on 2008-11-25.

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