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The effect of international competition on union and nonunion wages

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  • David A. Macpherson
  • James B. Stewart

Abstract

Using data from the May 1975 to 1981 Current Population Surveys, the authors examine the impact of international competition on union and nonunion wages. Two findings emerge from the study. First, international competition, measured by import share, was a significant determinant of union and nonunion wages: a 10% rise in the import share lowered the union wage differential by about 2%. Second, the net negative effect of a given import share on both union and nonunion wages decreased sharply in absolute magnitude as the percentage organized increased. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 43 (1990)
Issue (Month): 4 (April)
Pages: 434-446

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Handle: RePEc:ilr:articl:v:43:y:1990:i:4:p:434-446

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Cited by:
  1. Gaston, Noel & Trefler, Daniel, 1995. "Union wage sensitivity to trade and protection: Theory and evidence," Journal of International Economics, Elsevier, vol. 39(1-2), pages 1-25, August.
  2. Minsik Choi, 2001. "Threat Effect of Foreign Direct Investment on Labor Union Wage Premium," Working Papers wp27, Political Economy Research Institute, University of Massachusetts at Amherst.
  3. Arijit Mukherjee, 2012. "Product market competition, open shop union and wage," Journal of Economics, Springer, vol. 107(2), pages 183-190, October.
  4. Persyn, Damiaan, 2008. "Trade as a Wage Disciplining Device," IZA Discussion Papers 3786, Institute for the Study of Labor (IZA).
  5. Leahy, Dermot & Montagna, Catia, 2012. "Strategic investment and international outsourcing in unionised oligopoly," Labour Economics, Elsevier, vol. 19(2), pages 260-269.
  6. repec:ltr:wpaper:2000.17 is not listed on IDEAS
  7. Elisabetta Magnani & David Prentice, 2000. "Did Globalization Reduce Unionisation? Evidence from U.S. Manufacturing," Working Papers 2000.17, School of Economics, La Trobe University.
  8. De Santis, Roberto A., 1997. "The impact of a customs union with the EU on Turkey's welfare, employment and income distribution: An AGE analysis," Kiel Working Papers 843, Kiel Institute for the World Economy.
  9. Eugene Beaulieu & Vivek Dehejia & Hazrat-Omar Zakhilwal, 2004. "International Trade, Labour Turnover, and the Wage Premium: Testing the Bhagwati-Dehejia Hypothesis for Canada," CESifo Working Paper Series 1149, CESifo Group Munich.
  10. Jorge Saba Arbache, 1999. "Trade Liberalisation and Insider Power: The Case of Brazil," Studies in Economics 9902, Department of Economics, University of Kent.
  11. Arijit Mukherjee, . "Product market competition, external economies of scale and unionized wage," Discussion Papers 11/14, University of Nottingham, School of Economics.

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