IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v47y2013icp82-93.html
   My bibliography  Save this article

Why do people dislike low-wage trade competition with posted workers in the service sector?

Author

Listed:
  • Calmfors, Lars
  • Dimdins, Girts
  • Sendén, Marie Gustafsson
  • Montgomery, Henry
  • Stavlöt, Ulrika

Abstract

The issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, people's attitudes are found to be more negative to such trade than to goods trade. The differences depend on both a preference for favouring social groups to which individuals belong (the domestic population) and altruistic justice concerns for foreign workers. In small-group experiments, we find a tendency for people to adjust their evaluations of various aspects of trade to their general attitude. This tendency is stronger for those opposed to than those in favour of low-wage trade competition. This may indicate that the former group forms its attitudes in a less rational way than the latter group.

Suggested Citation

  • Calmfors, Lars & Dimdins, Girts & Sendén, Marie Gustafsson & Montgomery, Henry & Stavlöt, Ulrika, 2013. "Why do people dislike low-wage trade competition with posted workers in the service sector?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 82-93.
    • Handle: RePEc:eee:soceco:v:47:y:2013:i:c:p:82-93
    DOI: 10.1016/j.socec.2013.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S105353571300125X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2013.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kenneth F. Scheve & Matthew J. Slaughter, 1998. "What Determines Individual Trade Policy Preferences?," NBER Working Papers 6531, National Bureau of Economic Research, Inc.
    2. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    3. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    4. Mayda, Anna Maria, 2005. "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes Towards Immigration," CEPR Discussion Papers 5055, C.E.P.R. Discussion Papers.
    5. Kristen Olson, 2013. "Do non-response follow-ups improve or reduce data quality?: a review of the existing literature," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(1), pages 129-145, January.
    6. Edward J. Russo & Kurt A. Carlson & Margaret G. Meloy & Kevyn Yong, 2008. "The goal of consistency as a cause of information distortion," Post-Print hal-00481326, HAL.
    7. Breinlich, Holger & Criscuolo, Chiara, 2011. "International trade in services: A portrait of importers and exporters," Journal of International Economics, Elsevier, vol. 84(2), pages 188-206, July.
    8. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
    9. Mayda, Anna Maria, 2008. "Why are people more pro-trade than pro-migration?," Economics Letters, Elsevier, vol. 101(3), pages 160-163, December.
    10. Lori G. Kletzer, 2004. "Trade‐related Job Loss and Wage Insurance: a Synthetic Review," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 724-748, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martins Priedols & Girts Dimdins & Viktorija Gaina & Veronika Leja & Ivars Austers, 2022. "Political Trust and the Ultimate Attribution Error in Explaining Successful and Failed Policy Initiatives," SAGE Open, , vol. 12(2), pages 21582440221, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars Calmfors & Girts Dimdins & Marie Gustafsson Sendén & Henry Montgomery & Ulrika Stavlöt, 2012. "Why Do People Dislike Low-Wage Trade Competition with Posted Workers in the Service Sector?," CESifo Working Paper Series 3842, CESifo.
    2. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants across Countries," CESifo Working Paper Series 1768, CESifo.
    3. Chong, Alberto & Gradstein, Mark, 2008. "What determines foreign aid? The donors' perspective," Journal of Development Economics, Elsevier, vol. 87(1), pages 1-13, August.
    4. O'Rourke, Kevin H. & Sinnott, Richard, 2006. "The determinants of individual attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 22(4), pages 838-861, December.
    5. Mayda, Anna Maria, 2008. "Why are people more pro-trade than pro-migration?," Economics Letters, Elsevier, vol. 101(3), pages 160-163, December.
    6. Gradstein, Mark & Chong, Alberto E., 2006. "Who's Afraid of Foreign Aid?: The Donors' Perspective," IDB Publications (Working Papers) 1573, Inter-American Development Bank.
    7. Natalia Melgar, 2013. "Interaction Effects in Probit Models, Reinterpreting the Impact of Education on Attitudes towards Immigrants and Free-Trade," Documentos de Trabajo (working papers) 1013, Department of Economics - dECON.
    8. Alberto Chong & Mark Gradstein, 2006. "¿Quién tiene miedo de la ayuda extranjera? La perspectiva del donante," Research Department Publications 4453, Inter-American Development Bank, Research Department.
    9. David Card & Christian Dustmann & Ian Preston, 2012. "Immigration, Wages, And Compositional Amenities," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 78-119, February.
    10. MORIKAWA Masayuki, 2015. "Service Trade and Productivity: Firm-level evidence from Japan," Discussion papers 15030, Research Institute of Economy, Trade and Industry (RIETI).
    11. Ariu, Andrea & Breinlich, Holger & Corcos, Gregory & Mion, Giordano, 2019. "The interconnections between services and goods trade at the firm-level," Journal of International Economics, Elsevier, vol. 116(C), pages 173-188.
    12. Kevin H. O'Rourke, 2003. "The Era of Free Migration: Lessons for Today," Trinity Economics Papers 200315, Trinity College Dublin, Department of Economics.
    13. Marfouk, Abdeslam, 2013. "Préjugés et fausses idées sur l’immigration et les immigrés, vecteurs de discrimination en matière d’accès à l’emploi [false ideas about immigrants and immigration and discrimination in labor marke," MPRA Paper 47989, University Library of Munich, Germany.
    14. Gerdes, Christer & Wadensjö, Eskil, 2008. "The Impact of Immigration on Election Outcomes in Danish Municipalities," IZA Discussion Papers 3586, Institute of Labor Economics (IZA).
    15. Gabriel Felbermayr & Toshihiro Okubo, 2022. "Individual preferences on trade liberalization: evidence from a Japanese household survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 305-330, February.
    16. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2020. "The political economy of trade and migration: Evidence from the U.S. Congress," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 250-278, July.
    17. Giovanni Facchini & Anna Maria Mayda, 2009. "The Political Economy of Immigration Policy," Human Development Research Papers (2009 to present) HDRP-2009-03, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
    18. Maria D. Tito, 2019. "Exporters of Services: A Look at U.S. Exporters Outside of the Manufacturing Sector," Finance and Economics Discussion Series 2019-063, Board of Governors of the Federal Reserve System (U.S.).
    19. Asier Minondo, 2014. "The Relationship Between Export Status And Productivity In Services: A Firm-Level Analysis For Spain," Bulletin of Economic Research, Wiley Blackwell, vol. 66(S1), pages 138-146, December.
    20. Kent Eliasson & Pär Hansson, 2016. "Are workers more vulnerable in tradable industries?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 283-320, May.

    More about this item

    Keywords

    Services trade; Posted workers; Wage regulations; Attitude formation;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:47:y:2013:i:c:p:82-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.