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Another look at mass migration and unions in Western Europe

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  • Basu, Bharati
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    Abstract

    The paper analyses implications of unions' strategy for employment in western European countries that are baffled with mass migration of unskilled workers from neighboring poor countries. Unions' strategy in this paper includes bargaining for non-wage benefits together with monetary compensation for workers. It is shown that unions' strategy generates employment, raises the ratio of skilled to unskilled workers and raises national income. This suggests that even when migration acts as a competitive fringe, instead of using controversial migration policy as a covert anti-union tool, policy makers should encourage this type of bargaining which will have both economically and politically favorable effects.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-4W0R3HY-1/2/1a62af37c2c3de01521870709ec2bd5c
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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 26 (2009)
    Issue (Month): 5 (September)
    Pages: 878-885

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    Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:878-885

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    Web page: http://www.elsevier.com/locate/inca/30411

    Related research

    Keywords: Migration Unions and non-wage benefits Unemployment;

    References

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    1. Peter B. Kenen, 1965. "Nature, Capital, and Trade," Journal of Political Economy, University of Chicago Press, vol. 73, pages 437.
    2. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
    3. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
    4. Brecher, Richard A. & Choudhri, Ehsan U., 1987. "International migration versus foreign investment in the presence of unemployment," Journal of International Economics, Elsevier, vol. 23(3-4), pages 329-342, November.
    5. Rivera-Batiz, Francisco L., 1982. "International migration, non-traded goods and economic welfare in the source country," Journal of Development Economics, Elsevier, vol. 11(1), pages 81-90, August.
    6. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer, vol. 7(2), pages 177-92.
    7. Peter B. Kenen, 1965. "Errors in "Nature, Capital, and Trade"," Journal of Political Economy, University of Chicago Press, vol. 73, pages 658.
    8. John P. Haisken-DeNew & Klaus F. Zimmermann, . "Blue Collar Labor Vulnerability," Working Papers 9322, SELAPO Center for Human Resources.
    9. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March.
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