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Does trade liberalization always decrease union bargaining power?

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  • Jorge Saba Arbache

    (UnB)

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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Bibliographic Info

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;

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Cited by:
  1. Arbache, Jorge Saba, 2004. "Do Structural Reforms always Succeed? Lessons from Brazil," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Fariha Kamal & Mary E. Lovely & Devashish Mitra, 2014. "Trade Liberalization And Labor Shares In China," Working Papers 14-24, Center for Economic Studies, U.S. Census Bureau.
  3. Ahsan, Reshad N. & Mitra, Devashish, 2014. "Trade liberalization and labor's slice of the pie: Evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 108(C), pages 1-16.
  4. 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.
  5. Bosch, Mariano & Goñi-Pacchioni, Edwin & Maloney, William, 2012. "Trade liberalization, labor reforms and formal–informal employment dynamics," Labour Economics, Elsevier, vol. 19(5), pages 653-667.

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